UAE 2010

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uae 2010 UNITED ARAB EMIRATES

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UAE profile

Transcript of UAE 2010

uae2010U N I T E D A R A B E M I R A T E S

uae2010U N I T E D A R A B E M I R A T E S

Trident Press wish to acknowledge and thank the National Media Council for its valuable encouragement and

support of this multifaceted digital project involving production of an interactive UAE Yearbook in six languages,

featured on the dedicated website www.uaeyearbook.com and on DVD.

Design and typesetting: Noel Mannion

Editor: Paula Vine

Associate Editors: Ibrahim Al Abed, Peter Hellyer, Peter Vine

Contributors: Tom Arnold, Tamsin Carlisle, Zlata Filipovic, Peter Hellyer, Dr N Janardhan, Kathryn Lewis, Chris Stanton,

Mitya Underwood, Paula Vine.

Text copyright ©2010: Trident Press Ltd and The National Media Council.

All rights reserved. No part of this publication may be reproduced in any material form without the written

permission of both copyright holders. Applications should be addressed to the publisher.

Layout copyright ©2010: Trident Press Ltd and The National Media Council.

Photography: Nick Wood, Francisco Fernandez, Bader Al Awadhi, Emirates News Agency (WAM), Trident Press Ltd,

Getty Images, Hanne & Jens Eriksen, Peter Vine, Avi Ratnayake, Robert Butcher, Image Solutions

Yearbook information is, by definition, subject to change. The current edition is based on available information at the time

of publication. Whilst every care has been taken to achieve accuracy, the publishers cannot accept any liability for

consequences arising from the use of information contained in this Yearbook. Statistics are based on available sources

and are not necessarily official or endorsed by the UAE Government.

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Further information please contact:

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1 History

2 Uncovering the Past

3 Political System

4 Foreign Policy

5 Humanitarian Aid

6 The Economy

7 Financial Services

8 Oil & Gas

9 Infrastructure

10 Electricity & Water

11 Renewable Energy

12 Nuclear Programme

13 Telecommunications & Post

14 Social Affairs

15 Labour

16 Human Rights

17 Women

18 Education

19 Health

20 Media

21 Culture

22 Environment

23 Exhibitions & Expo

24 Sports

contents

U N I T E D A R A B E M I R A T E S 2 0 1 0

historyThe UAE has a long history, recent finds on the eastern side of the Hajar Mountains and in western Abu Dhabi having pushed the earliest evidence of man in the Emirates back by hundreds of thousands of years.

At this time, it is believed, the UAE may have played an important role in the migration of early

Man out of Africa into Asia. Prior to this, the earliest known human occupation for which there

is significant evidence dated from the Neolithic period, 5500 BC or 7500 years ago, when the

climate was wetter and food resources abundant. Even at this early stage, there is proof of

interaction with the outside world, especially with civilisations to the north. These contacts

persisted and became wide-ranging, probably motivated by trade in copper from the Hajar

Mountains, commencing around 3000 BC as the climate became more arid and fortified oasis

communities focused on agriculture.

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important dates

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Travel and TradeForeign trade, the recurring motif in the history of this strategic region, seems to have flourished also in later

periods, facilitated by domestication of the camel at the end of the second millennium BC. At the same

time, the discovery of new irrigation techniques (falaj irrigation) made possible the extensive watering of

agricultural areas that resulted in an explosion of settlement in the region.

By the first century AD overland caravan traffic between Syria and cities in southern Iraq, followed by seaborne

travel to the important port of Omana (perhaps present-day Umm al-Qaiwain) and thence to India was

an alternative to the Red Sea route used by the Romans. Pearls had been exploited in the area for millennia

but at this time the trade reached new heights. Seafaring was also a mainstay and major fairs were held at

Dibba, bringing merchants from as far afield as China.

Conversion to IslamThe arrival of envoys from the Prophet Muhammad in 630 AD heralded the conversion of the region to

Islam. By 637 AD Islamic armies were using Julfar (Ra’s al-Khaimah) as a staging post for the conquest of Iran.

Over many centuries, Julfar became a wealthy port and pearling centre from which great wooden dhows

ranged far and wide across the Indian Ocean.

War at SeaThe Portuguese arrival in the Gulf in the sixteenth century had bloody consequences for the Arab residents

of Julfar and east coast ports like Dibba, Bidiya, Khor Fakkan and Kalba. However, while European powers

competed for regional supremacy, a local power, the Qawasim, was gathering strength. At the beginning

of the nineteenth century the Qawisim had built up a fleet of over 60 large vessels and could put nearly

20,000 sailors to sea, eventually provoking a British offensive to control the maritime trade routes between

the Gulf and India.

Out of the DesertInland, the arc of villages at Liwa were the focus of economic and social activity for the Bani Yas from

before the sixteenth century. But by the early 1790s the town of Abu Dhabi had become such an important

pearling centre that the political leader of all the Bani Yas groups, the sheikh of the Al Bu Falah (Al Nahyan

family) moved there from the Liwa. Early in the nineteenth century, members of the Al Bu Falasah, a branch

of the Bani Yas, settled by the creek in Dubai and established Maktoum rule in that emirate.

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Pearling HeydayFollowing the defeat of the Qawasim in 1820, the British signed a series of agreements with the sheikhs of

the individual emirates that, later augmented with treaties on preserving a maritime truce, resulted in the

area becoming known as ‘The Trucial States’.

The pearling industry thrived in the relative calm at sea during the nineteenth and early twentieth centuries,

providing both income and employment to the people of the Arabian Gulf coast. Many of the inhabitants

were semi-nomadic, pearling in the summer months and tending to their date gardens in the winter.

However, their meagre economic resources were soon to be dealt a heavy blow.

The First World War impacted severely on the pearl fishery, but it was the economic depression of the late

1920s and early 1930s, coupled with the Japanese invention of the cultured pearl, that damaged it irreparably.

The industry eventually faded away just after the Second World War, when the newly independent

Government of India imposed heavy taxation on pearls imported from the Gulf. This was catastrophic for

the area. Despite their adaptability and resourcefulness, the population faced considerable hardship with little

opportunity for education and no roads or hospitals.

Oil and LeadershipFortunately, oil and the visionary leadership of Sheikh Zayed bin Sultan Al Nahyan were on the horizon.

Born around 1918 in Abu Dhabi, Sheikh Zayed was the youngest of the four sons of Sheikh Sultan, Ruler

of Abu Dhabi from 1922 to 1926. As Sheikh Zayed grew to manhood, he travelled widely throughout the

country, gaining a deep understanding of the land and of its people. In the early 1930s, when oil company

teams arrived to undertake preliminary geological surveys, he obtained his first exposure to the industry

that was to make possible the development of today.

In 1946, Sheikh Zayed was chosen as Ruler’s Representative in Abu Dhabi’s Eastern Region, centred on Al

Ain, 160 kilometres east of the island of Abu Dhabi. He brought to his new task a firm belief in the values

of consultation and consensus and his judgements ‘were distinguished by their acute insights, wisdom

and fairness’.

The first cargo of crude oil was exported from Abu Dhabi in 1962. On 6 August 1966, Sheikh Zayed

succeeded his elder brother as Ruler of Abu Dhabi. He promptly increased contributions to the Trucial

Right: Seawater pearls have been exploited in the UAE for millennia.

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States Development Fund and with revenues growing as oil production increased, Sheikh Zayed undertook

a massive construction programme, building schools, housing, hospitals and roads.

When Dubai’s oil exports commenced in 1969, Sheikh Rashid bin Saeed Al Maktoum, de facto Ruler of

Dubai since 1939, was also able to use oil revenues to improve the quality of life of his people.

FederationAt the beginning of 1968, when the British announced their intention of withdrawing from the Arabian Gulf

by the end of 1971, Sheikh Zayed acted rapidly to initiate moves towards establishing closer ties between

the emirates. Along with Sheikh Rashid, who was to become Vice President and, later, Prime Minister of the

newly formed state, Sheikh Zayed took the lead in calling for a federation that would include not only the

seven emirates that together made up the Trucial States, but also Qatar and Bahrain.

Following a period of negotiation, however, agreement was reached between the rulers of six of the

emirates (Abu Dhabi, Dubai, Sharjah, Fujairah, Umm al-Qaiwain and Ajman) and the federation to be known

as the United Arab Emirates (UAE) was formally established on 2 December 1971 with Sheikh Zayed as its

President. The seventh emirate, Ra’s al-Khaimah, formally acceded to the new federation on 10 February

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1972. Sheikh Zayed was successively re-elected as President at five-year intervals until his death 33 years

later in November 2004.

The new state emerged at a time of political turmoil in the region. A couple of days earlier, Iran had seized

the islands of Greater and Lesser Tunb, part of Ra’s al-Khaimah, and had landed troops on Abu Musa, part

of Sharjah. Foreign observers predicted that the UAE would survive only with difficulty, pointing to disputes

with its neighbours and to the wide disparity between the seven emirates. Sheikh Zayed was more

optimistic and the predictions of those early pessimists were shown to be unfounded. However, there is no

doubt that the prosperity, harmony and modern development that today characterises the UAE is due to a

very great extent to the formative role played by the UAE’s founding fathers.

Sheikh Zayed was succeeded as the UAE’s President and as Ruler of Abu Dhabi by his eldest son, H.H.

Sheikh Khalifa bin Zayed Al Nahyan in 2004. The principles and philosophy that he brought to government,

however, remain at the core of the state, and of its policies, today. H.H. Sheikh Mohammed bin Rashid Al

Maktoum, Ruler of Dubai, was chosen as Vice President of the Federation following the death of his brother

Sheikh Maktoum in 2006.

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uncovering

the pastThe past year marked a significant milestone in the study of the archaeology of the United Arab Emirates – the fiftieth anniversary of the first excavations ever undertaken in the country, at the Bronze Age site of Umm an-Nar, an island close to the UAE’s capital of Abu Dhabi.

The site, which includes around 40 massive collective graves and an associated settlement,

was first noted by an amateur enthusiast working for an oil company. Recognising its

potential significance, he invited a team of Danish archaeologists then working in Bahrain to

come and investigate. The oil company provided support – initiating a programme of active

funding of UAE archaeology by the country’s oil companies that has continued until today –

and a visit in early 1958 was sufficient to confirm the potential of the site.

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With the encouragement of the then Ruler, Sheikh Shakhbut, and his younger brother, Sheikh Zayed bin

Sultan Al Nahyan, later to become both Ruler of Abu Dhabi and the UAE’s founder-President, a first season

of excavations took place in February and March 1959, discovering a previously unknown culture, now

known as the Umm an-Nar civilisation, that has since been shown to have extended throughout modern-

day UAE and deep into Oman. This first season of excavations was followed by several further years of

work by the Danish team, both at Umm an-Nar and at Al Ain, in Abu Dhabi’s Eastern Region, laying the

foundations of Emirates’ archaeology.

At the time the Danes began their work at Umm an-Nar in 1959, little was known of the UAE’s history. Indeed,

it was believed that, apart from well-known coastal settlements like Julfar, in Ra’s al-Khaimah, and Dibba

and Khor Fakkan, on the east coast, the country had played little part in the history of human civilisation in

the Gulf region.

In the half-century that has followed, extensive excavations, undertaken both by local archaeological teams

and by foreign academic missions, have shown that, on the contrary, the land of the Emirates has a history

of human settlement that stretches back at least 200,000 years and that it has played an important part in

developments as varied as the migration of early Man out of Africa into Asia, the emergence of the pearling

industry, the supply, 5000 years ago, of copper to the great empires of Mesopotamia and the creation of

international maritime trading routes that extended as far away as China as much as 2000 years ago. Once

considered to be little more than what one historian has described as ‘a blank on the archaeological map

of Arabia’, the UAE has now come to occupy its rightful place as an important contributor to the history of

the region.

International ConferenceSome of the major discoveries over the last 50 years were among topics discussed at a special international

conference held in March 2009 to commemorate the anniversary of the first excavations. Organised by the

Ministry of Culture, Youth and Community Development and inaugurated by the Minister of Presidential

Affairs, H.H. Sheikh Mansour bin Zayed Al Nahyan, the conference brought together academics and others

both from the UAE and from the many countries overseas whose archaeologists have been involved in the

discovery of the cultural heritage and history of the Emirates.

Much of the conference dealt with a review of the discoveries of the previous decades of work, both in

terms of individual sites and in terms of the broader topic of the periods of settlement, from the Palaeolithic

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and Neolithic (early and late Stone Age) through the Bronze Age and Iron Age to the late pre-Islamic era and

then into the 1400 years of the Islamic period. Some important results from recent work, in particular from

the winter 2008–2009 season, were also unveiled.

New DiscoveriesWith over a dozen foreign archaeological teams working in the UAE each year, along with the work undertaken

by local departments in each emirate, it is not possible to provide a full summary of all of the recent major

discoveries. A brief overview both of results presented to the conference and of other activities, however, is

sufficient to provide an indication of the scope of the work, and of the way in which study of the archaeology

of the Emirates has continued to make finds of international significance.

In some cases, these are unique within the Arabian Gulf region. One, however, has no parallel anywhere

else in the world – the identification by a French team of a religious sanctuary at Akab, in Umm al-Qaiwain,

that comprised a large mound of carefully placed bones of the dugong, an endangered marine mammal

found in the Indo-Pacific. Dating back to the fifth millennium BC, in the Neolithic or Late Stone Age

period, the sanctuary sheds important light on cultural practices of the period. No other site indicating

veneration of dugongs is known anywhere else in the Middle East – and the only other sites anywhere

that have dugongs as their focus are from northern Australia, built by the aboriginal population in the last

few hundred years.

Also dating to the Neolithic period and related to animals is another site in the middle of the desert in

Abu Dhabi’s Western (Al Gharbia) Region. Excavations undertaken by a team from the Abu Dhabi Authority

for Culture and Heritage (ADACH), France’s CNRS and Oxford Brookes University from Britain have identified

the skeletons of several dozen camels along with flint tools, suggesting that the site may provide important

information on ancient hunting techniques. Studies of the bones will also contribute to a greater understanding

of Arabia’s wild camels as much as 3000 years before the species was domesticated.

Further knowledge of the Neolithic period has come from continuing studies by a team from Germany’s

University of Tubingen, working with the Sharjah Directorate of Antiquities, of the skeletons of more than

500 people excavated from one of the UAE’s most important Neolithic sites, at Jebel Buhais. The studies

have shown a high rate of injuries to the skull, a possible indication of widespread violence between

different groups of the population. At the time, the climate in the UAE was becoming more arid, with an

increasing shortage of water and other resources, and it has been suggested by the archaeologists that

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territorial conflicts between nomadic groups may have been the reason for the exceptional rate of violent

death at that time.

Moving forward in terms of time, important new evidence has also been uncovered of life in the UAE

during the Iron Age, which lasted from around 1300 BC–300 BC. Of particular interest has been the results

of work undertaken by Dubai Museum in association with the US University of Arkansas at Saruq al-Hadid,

a site deep in Dubai’s deserts. Although more than 50 kilometres from any known source of copper ore or

fuel, Saruq al-Hadid contains abundant evidence of copper, bronze and iron production, with thousands

of finely crafted metal objects, including vessels, daggers, jewellery and even fish hooks. A wide variety of

imported luxury items, including pottery, have also been found at the site. As a result of the finds, the whole

scope and nature of Iron Age occupation in the deserts of the UAE is being re-assessed.

Also from the Iron Age, but from Masafi, in the heart of the Hajar Mountains, work by a French archaeological

team in association with the Department of Antiquities of Fujairah that began in 2007 and has continued

in subsequent winter seasons has identified a large fortified settlement and a public building with a large

pillared room, as well as a number of artefacts decorated with representations of snakes. Similar finds have

also been made at Iron Age sites elsewhere in the Emirates, including at Qusais, in Dubai, suggesting that a

snake cult may have been part of the religious beliefs of the country’s inhabitants at the time.

Another important discovery shedding light on the pattern of Iron Age occupation in the UAE came

from excavations undertaken by Spain’s Universidad Autonoma de Madrid and the Sharjah Directorate of

Archaeology at Al-Thuqeibah, on the Al-Madam Plain, just to the west of the Hajar Mountains. During the

early part of the second half of the first millennium BC, (i.e. from around 500–300 BC), there appears to

have been a change in the climate in the Emirates with, in particular, declining rainfall. For populations of

villages like Al-Thuqeibah, dependent to a large extent on agriculture, this posed severe problems. One

response, as shown by the excavations, was a deepening of the underground falaj water channel that

brought water to the village and its fields, so that it could continue to tap into the water table as it slowly

declined. At least two phases of deepening the falaj have been identified, before the villagers finally gave

up and moved away.

Another Iron Age site to receive further attention was that of Muweilah, close to Sharjah International Airport.

Work undertaken by Bryn Mawr College, from the US, has provided detailed evidence for the layout and

organisation of this Iron Age II (1100–600 BC) settlement. It is now clear that the entire ancient settlement

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covered an extensive area and that the large walled compound (Area C) was only one component of the

human habitation. Campsites, probably the remnants of ‘arish (palm-frond) structures, cover an area spreading

over at least 20 hectares. Whether or not these areas were occupied at the same time or in sequence is not

yet clear.

In addition, excavations in the area of the walled compound have revealed a complex fortification system

that was remodelled over the life of the ancient settlement. One of the most unusual – and unparalleled –

discoveries is a 3-metre-wide ditch, which was created by the construction of two deep stone and mudbrick

walls. It seems that the ditch surrounded the entire settlement and, once filled, was replaced by a large

fortification wall. Despite these precautions, the ancient settlement of Muweilah was destroyed by an attack,

which probably occurred sometime in the eighth century BC, following which the site was buried beneath

sand dunes, another example of changing climate patterns during the period.

These Iron Age sites, as well as the Neolithic site at Jebel Buhais, indicate that the process of climate change

is not new: it is something that has affected patterns of settlement in the UAE for thousands of years and

provides, archaeologists would argue, lessons that should be taken into account in assessing the potential

impact of climate change today.

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Besides increasing aridity, climate change also affects other aspects of the world around us, one of which,

that of changes in sea level, has the potential to have a devastating effect on the Emirates, where the vast

majority of the population live in low-lying coastal areas. New evidence of past sea level changes near

the UAE’s capital of Abu Dhabi has come to light during the year under review as a result of excavations

sponsored by the Environment Agency – Abu Dhabi (EAD) at Musaffah. Around 2 metres above the current

high-tide mark, the skeleton of a large whale has been recovered from an area of sabkha (salt-flats). Lying

in what was once a shallow tidal channel, the whale was obviously washed up at a time when sea levels

were higher, perhaps around 6000 years ago, when the UAE’s Arabian Gulf coastline was further inland.

Sea level then fell, gradually, leading to the formation of the sabkhas that now stretch for hundreds of

kilometres along the coast. A programme of geological research along the Abu Dhabi coastline is already

producing results suggesting that sea levels have, once again, begun to rise, and the data collected during

the Musaffah excavations will help to assess the likely impact.

The UAE’s founding father, the late Sheikh Zayed, once commented that ‘He who does not know his past

cannot make the best of his present and future, for it is from the past that we learn.’ Through studies of the

UAE’s archaeology, that past is gradually coming more clearly into focus, offering lessons for the country’s

inhabitants of today and of tomorrow.

U N I T E D A R A B E M I R A T E S 2 0 1 0

political system

In line with the UAE’s rapid socio-economic developments, major steps have been taken, both at the federal and local levels, to reform the structure of government in order to make it more responsive to the needs of the country’s population and to ensure that it is better equipped to cope with the challenges of development.

This process has been directed, at a federal level, by President H.H. Sheikh Khalifa bin Zayed Al Nahyan, and devised and guided at an executive level by UAE Vice-President and Prime Minister and Ruler of Dubai H.H. Sheikh Mohammed bin Rashid Al Maktoum. Similar programmes have been launched at the local level in the individual emirates of the federation.

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ElectionsOne landmark step in this reform process designed to enhance public participation in the UAE political

system was the first-ever indirect elections to the country’s parliament, the Federal National Council (FNC),

which were conducted in December 2006.

The elections were based on the National Programme unveiled by the President a year earlier, which stated

that half the members of the FNC would be elected while the other half would be appointed as part of a

new effort to make the Council more dynamic. The move was aimed at allowing wider participation and

interaction of the citizens of the country.

Envisaging a bigger role for the FNC, the President said:

“Considering the developments in our region, which is now witnessing transformation and reforms, the years ahead require a bigger role for the FNC by empowering it to be an authority that would provide great support and guidance for the executive arm of the government… We shall work to make the Council more capable, more effective and more sensitive to the issues affecting the nation and the people. This would be done by ensuring a more participatory process and the entrenchment of Shura (consultations) policy“

New StrategyThe launch of the UAE Government Strategy in 2007 was another important development in the reform

process. The strategy, according to Sheikh Mohammed bin Rashid,

“sets the foundations for a new era of public administration. The changing times and the nature of the challenges prompt us to think in a different way and to adopt international best practices in the area of public administration. This strategy unifies efforts within a strategic framework with clear objectives, based on detailed studies (and)… clearly identifies and integrates federal and local efforts.”

A key focus of the UAE Government Strategy is to create synergy between federal and local governments.

Other principles include revitalising the regulatory and policy-making roles of the ministries and improving

their decision-making mechanisms, increasing the efficiency of governmental bodies and upgrading their

services in accordance with the needs of the people, as well as reviewing and upgrading existing legislation.

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Political StructureTo ensure effective governance of the new state after its establishment in 1971, the rulers agreed to draw

up a provisional Constitution specifying the powers allocated to the new federal institutions. As in many

federal structures around the world, certain powers remained the prerogative of each of the individual

emirates, which already had their own governing institutions prior to the establishment of the Federation.

Under Articles 120 and 121 of the Constitution, the areas under the purview of the federal authorities are

foreign affairs, security and defence, nationality and immigration issues, education, public health, currency,

postal, telephone and other communications services, air traffic control and licensing of aircraft, in addition to

a number of other sectors specifically prescribed, including labour relations, banking, delimitation of territorial

waters and extradition of criminals. All other matters were left to the jurisdiction of the individual emirates and

their local governments. In May 1996, the Federal Supreme Council – comprising of the rulers of the seven

emirates – approved two amendments to the provisional Constitution and agreed to make it permanent.

A closer look at the working of the federal and local governments, both separately and combined, underlines

the UAE’s unique amalgamation of the traditional and modern political systems that have guaranteed

national stability and laid the foundation for development.

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Federal Government At present, the federal system of government includes the Supreme Council, the Council of Ministers

(Cabinet), a parliamentary body in the form of the Federal National Council (FNC) and the Federal Supreme

Court, which is representative of an independent judiciary.

The Supreme Council elects a president and vice-president from amongst them to serve for a renewable

five-year term in office. Accordingly, the Supreme Council re-elected President Sheikh Khalifa for another

five-year term in November 2009.

The Supreme Council, comprising the rulers of the seven emirates, has both legislative and executive powers.

It ratifies federal laws and decrees, plans general policy, approves the nomination of the prime minister and

accepts his resignation. It also relieves him from his post upon the recommendation of the president.

The Council of Ministers, described in the Constitution as ‘the executive authority’ for the Federation, is headed

by a prime minister, chosen by the president in consultation with the Supreme Council. The prime minister,

currently also the vice-president, then proposes the Cabinet, which requires the president’s ratification.

UAE Political Structure

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UAE Political Structure

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Federal National CouncilThe FNC is the UAE’s advisory council, composed of 40 members – eight from Abu Dhabi and Dubai; six from

Sharjah and Ra’s al-Khaimah; and four from Ajman, Umm al-Qaiwain and Fujairah. After following a practice

of nominating all 40 members between 1972 and 2006, 20 members of the current FNC were elected by an

Electoral College in 2006, with the remainder nominated by the rulers of the respective emirates.

Since February 1972, the FNC has completed 14 legislative sessions, discussing issues and draft laws

concerning the people and economy. According to the Constitution, federal draft laws have to pass through

the FNC for review and recommendations.

The FNC’s functions include:

X Discussing constitutional amendments and draft laws, which may be approved, amended or rejected.

X Reviewing the annual draft budget of the federation.

X Debating international treaties and conventions.

X Influencing the Government’s work through the channels of discussion, question and answer sessions,

recommendations and following up on complaints.

Throughout its history, the FNC has influenced the federal government in the drafting of new legislation. A

majority of its recommendations and amendments have been adopted by the Government. Original draft

laws from the Cabinet have been amended by the FNC to suit the needs of the citizens they represent.

The current FNC is chaired by Abdul Aziz Abdullah Al Ghurair, who was elected in 2006.

Federal JudiciaryThe federal judiciary, which is accorded independence under the Constitution, includes the Federal Supreme

Court and Courts of First Instance. The Federal Supreme Court comprises five judges appointed by the

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Supreme Council. The judges decide on the constitutionality of federal laws and arbitrate on inter-emirate

disputes and disputes between the federal government and the emirates.

Local Government Corresponding to the federal institutions are the local governments of the seven emirates. Varying in size,

they have evolved along with the country’s growth. However, their mechanisms differ from emirate to emirate,

depending on factors such as population, area, and degree of development.

The largest and most populous emirate, Abu Dhabi, has its own central governing organ, the Executive

Council, chaired by Crown Prince H.H. Sheikh Mohammed bin Zayed Al Nahyan, under which there are a

number of separate departments, equivalent to ministries. A number of autonomous agencies also exist

with clearly specified powers. These include the Environmental Agency – Abu Dhabi, Abu Dhabi Tourism

Authority, Abu Dhabi Authority for Culture and Heritage and Health Authority – Abu Dhabi.

The emirate is divided into two regions – Al Gharbia (previously known as the Western Region) and the

Eastern Region, headed by Ruler’s Representatives. The main cities, Abu Dhabi and Al Ain, are administered

by municipalities, each of which has a nominated Municipal Council. A municipal authority has also been

created for Al Gharbia. Abu Dhabi also has a National Consultative Council, chaired by a Speaker, with 60

members selected from among the emirate’s main tribes and families.

The Dubai Executive Council, established in 2003, has similar functions for the UAE’s second-largest emirate

and is headed by Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum. Sharjah and Ajman

also have Executive Councils. In addition to an Executive Council, Sharjah has developed its own Consultative

Council. Further, Sharjah, with three enclaves on the country’s east coast, has adopted the practice of

devolving some authority on a local basis, with branches of the Sharjah Emiri Diwan (Court), headed by

deputy chairmen, in both Kalba and Khor Fakkan.

A similar pattern of municipalities, departments and autonomous agencies can be found in each of the

other emirates. In smaller or more remote settlements, the ruler of each emirate may choose a local

representative, an emir or wali, to act as a conduit through which the concerns of inhabitants may be

directed to government. In most cases, these are the leading local figures, whose authority emanates both

from the consensus of their community and the confidence placed in them by the ruler.

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Federal-Local Interaction The powers of the various federal institutions and their relationship with the separate local institutions have

changed since the establishment of the state. Under the terms of the Constitution, rulers may relinquish

certain areas of authority to the Federal Government – one such significant move was the decision to

unify the armed forces in the mid-1970s. The 1971 Constitution also permitted each emirate to retain, or to

take up, membership in the Organisation of Petroleum Exporting Countries and the Organisation of Arab

Petroleum Exporting Countries, although none have done so (Abu Dhabi relinquished its membership in

favour of the federation in 1971).

The relationship between the federal and local systems of government continues to evolve. As the smaller

emirates have benefited from education, for example, they have also been able to recruit personnel to local

government services that were once handled on their behalf by federal institutions. These new systems of

government have not, however, replaced the traditional forms that coexist alongside. The key driver behind

such developments remains performance and efficiency in the delivery of services to citizens and the

expatriate population residing in the UAE.

Traditional Government Traditionally, governments were always small, both in size and scope. This was natural, given the size of

the communities and the difficult economic environment in which they existed. However, this environment

valued consensus as well as participation, and the traditional form of such participation would exist within

the context of a majlis or council. In this framework, issues relevant to the community were discussed and

debated. Opinions were expressed and the sheikh would take these opinions with consideration prior to

taking a decision.

Traditionally, the ruler of an emirate – the sheikh – was the leader of the most powerful tribe, while each

tribe, and often its sub-sections, also had a chief or sheikh. These maintained their authority only as long as

they were able to retain the support of their people. This, in essence, was a form of direct democracy. Part of

that process was the unwritten, but strong, principle that the people should have open access to their ruler,

and that he should hold a frequent and open majlis, in which his fellow citizens could voice their opinions.

Such a direct democracy, which may be ideally suited to small societies, becomes more difficult to maintain

as the population grows. Simultaneously, the increasing sophistication of government administration means

33 > political system

that many people now find it more appropriate to deal directly with these institutions on most matters,

rather than seek personal meetings with their rulers.

Despite the change in times, a fascinating aspect of life in the UAE even today – and one that is essential

to better understand its political system – is the way in which the institution of the majlis maintains its

relevance. In many emirates, the ruler and a number of other senior family members continue to hold an

open majlis, in which participants may raise a wide range of topics, both of personal interest and of broader

concern. This remains an important parallel of political participation and enriches political participation in

the cultural context. It is now evident that it is these elements of governance that have served as a solid

foundation in maintaining the unique identity of the country against a backdrop of rapid economic and

social changes.

New Wave of ChangeIn his National Day address in December 2005, President H.H. Sheikh Khalifa called for a greater role for the

FNC, the ultimate objective being to increase participation and ‘to entrench the rule of law and due process,

accountability, transparency and equal opportunity…’

Accordingly, the political modernisation process was envisaged in three stages: first, conduct elections

to elect half the FNC members through an Electoral College; second expand the powers of the FNC and

increase the number of FNC members, which would require extensive constitutional studies and possible

modifications, at the end of which the political institution would be a more enabled body; and finally, an

open election for half the Council.

The first step towards political change was the establishment of the Electoral College. This was created

through a process by which each emirate nominated a council that had at least 100 times the number of

FNC seats it is entitled to fill. For example, the emirates of Abu Dhabi and Dubai, which are each entitled to

eight seats on the FNC, could nominate at least 800 electors each to their respective electoral colleges.

Similarly, Sharjah and Ra’s al-Khaimah are entitled to six, and had to nominate at least 600 members of

their electoral colleges, while Umm al-Qaiwain, Ajman and Fujairah are entitled to four seats each and

could nominate at least 400. All could nominate more if they wished, and in some emirates, the colleges

were substantially larger than the minimum number laid down. These representatives then elected half

the FNC members for their emirate, the ruler nominating the other half. This mechanism for indirect

34 > UAE 2010

elections to public office brought new faces into the political process and also established an election-

based culture for the first time in the history of the UAE.

Rationale for Gradual ChangeThe political changes were derived from the understanding that as the world around the UAE evolves, it is

important for the country to develop and modernise its political process. The elections were part of a general

effort to keep pace with fundamental realities that include a young, educated and enthusiastic population,

the challenges of resources, the role of women and a recognition of the way in which issues have polarised

society in other parliamentary experiments in the region. Demography is also an omnipresent factor in the

strategy and development of the UAE’s political system. The elections were a gradualist step towards taking

account of these changes, while maintaining stability and economic viability.

The government’s decision to conduct elections is testimony to the high degree of mutual trust between

the rulers and citizens. The purpose of the elections was to expand political participation and develop a

culture of government reform. The limited scope of participation was conditioned by three reasons – first,

the country does not have an electoral tradition; two, the prevailing political tension and instability in the

region meant that there was no scope for error; and finally, elections in the region have proved to be divisive

affairs, based on sectarian and religious issues, which the UAE wanted to avoid.

After the completion of the polling process, President Sheikh Khalifa said:

“Now that the election of the FNC members is complete… we want (it) to be a launch pad to a greater height and a comprehensive practice towards grassroots participation in our decision-making process and shouldering of responsibilities. The trust of the voters is a responsibility that should be shouldered in the best interest of the nation and its citizens. The gradual parliamentary process reflects the particularity of the UAE political experience, which was laid down by the late Sheikh Zayed bin Sultan Al Nahyan. That political experience has contributed immensely to providing stability and prosperity to our union. As we adopt this same method to develop the principle of public participation, we strongly believe this gradual approach will contribute positively in the building of a mature parliamentary process, which has the necessary factors to perform its legislative and supervisory duties in accordance with the constitution… It is therefore the responsibility of the FNC members to improve our legislation to be

Right: H. H. Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, Ruler of Dubai.

36 > UAE 2010

in line with developments in a way that harmonises with our national interests. We strongly believe the government will create the right climate that will enable the FNC to live up to its role as a bridge between citizens and the state institutions and its executive and administrative leaders…”

Empowering the FNCIn December 2008, the Supreme Council approved constitutional amendments both to empower the FNC

and to enhance government transparency and accountability.

First, as per the amendment of Article 72, the term of office for FNC members was extended from two to

four years, which allows for a more appropriate timeframe for discussion of issues. Second, the amendment

of Article 78 mandates that the FNC session begin in the third week of October each year, thus reducing the

length of the parliamentary recess to coincide with the Cabinet’s work and allowing further cooperation

between the government and the FNC. Third, Article 91 has been amended to allow the government to

notify the FNC of international agreements and conventions it proposes to sign, providing an opportunity

for the FNC to debate them before ratification.

Further, the amendment of Article 62 states that the prime minister or his deputies or any federal minister

shall neither practice any professional or commercial job nor shall they enter into a business transaction

with the federal government or local governments

Thus, the changes envisioned and undertaken by the UAE leadership represent an indigenous initiative

reflecting the need to transform the country’s traditional political heritage – based on consensus, the

primacy of the consultative process and gradual social change – into a more modern system that takes into

account the rapid socio-economic advances made since the establishment of the federation.

37 > political system

Constitutional Framework for Federal Law-making Process

Article 110

X A draft law shall become a law after the adoption of the following procedure:

1 The Cabinet shall prepare a bill and submit it to the FNC.

2 The Cabinet shall submit the bill to the President for his approval and presentation to the Supreme

Council for ratification.

3 The President shall sign the bill after ratification by the Supreme Council and shall promulgate it.

X If the FNC inserts any amendment to the bill and this amendment is not acceptable to the President or

the Supreme Council, or if the FNC rejects the bill, the President or the Supreme Council may refer it back to

the FNC. If the FNC introduces an amendment on that occasion which is not acceptable to the President

or the Supreme Council, or if the FNC decides to reject the bill, the President may promulgate the law after

ratification by the Supreme Council.

X Notwithstanding the above, if the situation requires the promulgation of federal laws when the FNC is not

in session, the Cabinet may issue them through the Supreme Council and the President, provided that the FNC

is notified at its next meeting.

Article 113

X Should a necessity arise for urgent promulgation of federal laws between sessions of the FNC, the President

together with the Cabinet may promulgate the necessary laws in the form of decrees which shall have the

force of law, provided that they are not inconsistent with the Constitution.

X Such decrees-laws must be referred to the Supreme Council within a week at the maximum for assent or

rejection. If they are approved, they shall have the force of law and the FNC shall be notified at its next meeting.

However, if the Supreme Council does not approve them, they shall cease to have the force of law.

U N I T E D A R A B E M I R A T E S 2 0 1 0

foreign

policy

The UAE’s political leadership operates within the broad foreign policy framework established by the founding President of the Federation, Sheikh Zayed bin Sultan Al Nahyan. This approach emphasises diplomacy, negotiation and compassion. The UAE is mindful of its commitment to its neighbours and the international community with regard to regional peace, stability and human security for all. To achieve these goals, it has purposefully promoted bridges, partnerships and dialogue. Relying on these tools of engagement has allowed the government to pursue effective, balanced and wide-ranging ties with the international community.

A guiding principle of UAE foreign policy is the belief in the need for justice in international dealings between

states, including the necessity of respecting the principle of non-interference in the sovereign affairs of

other nations. The UAE is also committed towards peaceful resolution of disputes and backs international

institutions to reinforce the rule of international law and implementation of conventions and treaties.

One of the central features of the UAE’s foreign policy has been the development of closer ties with

its neighbours in the Arabian Peninsula through the six-member Gulf Cooperation Council (GCC). The

developments in Palestine, Iraq, Iran, Yemen, Afghanistan and Pakistan and the initiatives required to deal

with them formed the core of the UAE dialogue with world leaders during 2009.

The UAE is dedicated to peace, security and stability in the Arab region, as well as normalisation of relations

between all countries and a just and lasting solution to the Middle East conflict. It believes that peace

cannot be achieved while the Israeli occupation of the Palestinian and other Arab territories continues; it

supports an end to Israeli occupation and the establishment of an independent Palestinian state with East

Jerusalem as its capital, within the context of an agreement based on the Arab Peace Initiative.

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40 > UAE 2010

PalestineReflecting this consistency, President Sheikh H.H. Khalifa bin Zayed Al Nahyan reiterated to Palestinian President

Mahmoud Abbas in November 2009 that the UAE would unswervingly support the right of the Palestinian

people to establish an independent state. Sheikh Khalifa urged international action to freeze the construction

of Jewish settlements in the West Bank and Jerusalem in a bid to revive the Middle East peace process.

The UAE also expressed disappointment with the peace process because of the continued hostile attitude

of the Israeli Government. This includes the suffocating blockade imposed on the Palestinian people,

particularly in Gaza, and the continuous challenge of the resolutions of international legality and annexation

of more territories.

In the struggle to regain the Palestinian people’s rights, the UAE reiterated its firm support to the Palestinian

National Authority and President Mahmoud Abbas, to the Palestinian Liberation Organisation as the sole

legitimate representative of the Palestinian people and to the Palestinian Government headed by Dr

Salam Fayad.

Earlier in the year, the UAE Cabinet condemned the Israeli aggression on Gaza and expressed solidarity with

the Palestinians affected by the war. It said the Israeli aggression ‘constituted an unequivocal violation of

international laws that protect civilians and safeguard their rights during war.’

At the second international conference to support the Palestinian economy and reconstruction of Gaza

strip, which was held in Sharm el Sheikh, Egypt, the UAE said it would continue to offer political, economic

and humanitarian support to the Palestinian cause. The UAE has provided over US$3 billion in aid to the

Palestinians, including development funds for infrastructure, housing, hospital and school projects. In addition,

the country donated US$174 million towards reconstruction in Gaza.

IraqThe UAE has been an active supporter of the Iraqi Government in its efforts to draw up a comprehensive

political formula to enable the country achieve security and stability. The UAE commended the gradual

withdrawal of foreign troops and the extension of Iraqi Government authority across the country. The UAE

also reaffirmed its long-standing support for the Iraqi people and the rebuilding of the country’s security,

legislative and economic institutions. It urged respect for the territorial integrity of Iraq, its sovereignty and

42 > UAE 2010

independence, and called for safeguarding the Arab and Islamic identity of the country to protect against

its disintegration. The UAE has one of the few functioning Arab embassies and resident ambassadors in

Baghdad, and has cancelled debts worth about US$7 billion to support Iraq’s reconstruction efforts.

IranDespite a long-running dispute with Iran on the question of the three occupied UAE islands and worries

about Iran’s nuclear programme, the UAE has kept open all channels of constructive engagement that could

result in a mechanism for confidence-building measures and peaceful resolution of all outstanding issues.

Addressing the forty-sixth United Nations General Assembly in New York, Foreign Minister Sheikh Abdullah

bin Zayed Al Nahyan said:

“The UAE renews its expression of disappointment at the continued occupation by the Islamic Republic of Iran of the three UAE islands – Greater Tunb, Lesser Tunb and Abu Musa – since 1971. The UAE demands the return of these islands to its full sovereignty, including their regional waters, airspace, continental shelf and their exclusive economic zone, as integral parts of the UAE. The UAE affirms that all military and administrative measures taken by the Iranian Government on these islands are null and void. The UAE also affirms that these measures do not have any legal effect, regardless of how long the occupation may last. We call upon the international community to urge Iran to respond to the peaceful and sincere initiatives of the UAE. They call for a just settlement of this issue, either through direct negotiations between the two countries or by referring it to the International Court of Justice in accordance with the principles of the UN Charter and the provisions of international law. We hope the Iranian Government will respond positively and fairly to this sensitive issue to strengthen neighbourly relations, enhance cooperation and promote common interests between our two countries… and achieve security, stability and prosperity in the region.”

With regard to Iran’s nuclear programme, Sheikh Abdullah commented:

“We urge the Islamic Republic of Iran to continue its cooperation with the International Atomic Energy Agency (IAEA) and the international community in order to allay fears and doubts raised about the nature and purposes of its nuclear programme. We also call upon the negotiating parties to continue their political and diplomatic approach, avoid any escalation and reach a peaceful agreement that ensures the security and stability of the countries in the region and their people.”

43 > foreign policy

Afghanistan/PakistanThe UAE continues to contribute constructively to the international efforts aimed at stabilising Afghanistan

and supporting its bid to restore security. As part of its humanitarian and development assistance to

Afghanistan, the UAE provided US$550 million between 2002 and 2008. The UAE is the only Arab country

performing humanitarian activities on the ground in Afghanistan. The UAE also emphasises the importance

of achieving harmony, building confidence and strengthening cooperation with its neighbouring countries,

particularly Pakistan.

Given Pakistan’s proximity to the Gulf region, the UAE has affirmed the importance of stability in Pakistan.

As part of encouraging bilateral and multilateral strategic partnerships to assist Pakistan, the UAE hosted a

two-day expert-level meeting of the ‘Friends of Democratic Pakistan’, an organisation involving 24 donor

countries and international development institutions, which discussed a proposal of a ten-year US$30 billion

aid and investment package. The UAE also participated in the ministerial and donors’ conference in Tokyo.

Strengthening TiesBeyond the region, the UAE’s foreign policy continues to adapt to accommodate the evolving changes

in the global community. As part of its pragmatic approach, the UAE is building bilateral and multilateral

relations with both industrialised and developing countries, while strengthening ties with its traditional

allies in the West.

In October, the UAE hosted high-ranking officials from 28 countries of the North Atlantic Treaty Organisation

(NATO), headed by NATO Secretary General Anders Fogh Rasmussen, as part of discussions to chart a way

forward within the framework of the Istanbul Cooperation Initiative (ICI). Delivering the keynote address,

Sheikh Abdullah commented:

“Since its accession to the Istanbul Cooperation Initiative, the UAE has worked hard to promote common security issues in the fields of defence arrangements, enhance regional and international efforts to combat terrorism, participate in peacekeeping operations, and achieve stability and reconstruction in conflict-ridden regions in the world…. The UAE flag fluttered high as a messenger of peace, reconciliation and reconstruction in Lebanon, Somalia, Balkans, Iraq and Afghanistan, among others. . . At the same time, we look forward to enriching the ICI with new approaches to handle emerging challenges and common threats in order to promote and preserve comprehensive peace and security.”

44 > UAE 201044 > UAE 2010

Global CommunityAs the second largest Arab economy, the UAE’s foreign policy is naturally geared towards creating greater

commercial opportunities with various partners. An important aspect of the UAE’s foreign policy, therefore,

places great emphasis on nurturing an expansion of commercial and investment links with other countries

and institutions worldwide. The UAE’s fast-developing position as a financial hub for the region has further

solidified and strengthened its position as a member of the global community.

In line with this approach, the UAE’s diversification of intense diplomatic contacts included Africa and its

regional groupings. The Government’s aim is to strengthen cooperation by entering into bilateral and

multilateral partnerships with African countries in accordance with the Millennium Development Goals. The

UAE is keen on fighting poverty and ensuring that Africa receives a fair and equitable share of global prosperity.

A ground-breaking tour of Latin America by Sheikh Abdullah was a major step forward in displaying the

UAE’s adaptability to the changing international relations scenario.

45 > foreign policy45 > foreign policy

As Asia weathered the economic crisis more successfully than other parts of the world, there were ample

indications that some of the major Asian countries would play a more influential role in world politics.

Absorbing this shift and reflecting the desire to further consolidate ties, the UAE leadership continued to

develop its relations with a number of Asian countries, including China and India.

Forum for the FutureThe UAE also affirmed its commitment to constructive dialogue and action within the framework of the

Forum for the Future. It pledged to work toward developing the Forum’s mechanism and strengthening

joint responsibility for sustainable development and human security. At the sixth session of the Forum in

Marrakesh, the UAE reiterated its keenness to enhance joint cooperation and to strengthen the Forum’s tools

to support national and regional schemes and to promote the values and culture of dialogue, democracy,

tolerance, acceptance of diversity, respect for differences, improving education, protection of environment,

empowerment of women, youth welfare, maintenance of stable financial markets, boosting peace and

security efforts, respect for national choices and unity and stability of the nations.

46 > UAE 2010

IRENAOne major diplomatic success for the UAE during 2009, which also reflected its growing international status,

came with Abu Dhabi being chosen to host the headquarters of the International Renewable Energy Agency

(IRENA). This is the first time that a developing country has had the opportunity to host the headquarters of

a major international organisation. It is also indicates the country’s willingness to shoulder its international

responsibilities and help the world to face challenges related to diversifying energy sources.

As part of its diplomatic efforts to build bridges and robust partnerships, as well as drum up support for its

bid, teams headed by seven UAE ministers lobbied IRENA member states across the world for their support

for the UAE’s candidacy. Addressing the 136-member IRENA summit ahead of the voting process, Sheikh

Abdullah said:

“Our vision has from the outset consisted of an IRENA that ensures all voices from all over the world are not just heard, but listened to. That the concerns of the small, poor, or developing are given equal consideration as those of the big, or rich or developed. And that ideas and expertise that benefit one, benefit all…IRENA must serve those countries that need it most. We must ensure that the developing countries are offered opportunities to participate in the agency on an equal footing. This is a key platform of the UAE agenda and a firm commitment of our bid. No country can be left behind as we move towards a future built on renewable energy…I call on you today to vote for an IRENA that encapsulates our globalised world and that celebrates our differences as well as our commonalities. Let IRENA be an agency of difference and of change. Let IRENA represent the convergence of an unprecedented North-South partnership and a new impetus for the countries that it seeks to serve by being located in the heart of its development.”

Nuclear DevelopmentsThe UAE’s quest for nuclear energy also witnessed intense diplomatic efforts to develop cooperation

mechanisms to guarantee a credible and comprehensive civilian programme. This push resulted in the

signing of the UAE-US civilian nuclear cooperation agreement in January, the first such US arrangement

in the Middle East. The deal, which is touted as a ‘powerful and timely model’ for the region, allows the

UAE to buy American nuclear power equipment, technology and fuel. In turn, the UAE – a Nuclear Non-

Proliferation Treaty (NPT) signatory – has agreed to open its nuclear facilities to full international inspections

and refrain from producing its own reactor fuel.

47 > foreign policy

Referring to the UAE’s civilian nuclear programme, Sheikh Abdullah told the United Nations General Assembly:

“We are confident that this will provide an opportunity to make a positive change in the international arena. We hope that developing a peaceful nuclear energy model – which complies with the highest standards of transparency in operating the nuclear facilities and fulfills the highest requirements of nuclear safety and non-proliferation, in cooperation with the International Atomic Energy Agency and other responsible and experienced states – would chart a new course for a large group of countries for the safe use of nuclear energy, with international support. The UAE’s commitment not to enrich uranium and reprocess fuels locally is among the most salient features of this model. This is a model supported by enhanced international transparency and cooperation mechanisms. The policy supports the principles of the Nuclear Non-Proliferation Treaty and reflects the UAE’s position, which calls for making the Middle East and the Gulf a zone free of weapons of mass destruction, particularly nuclear weapons.”

US President Barack Obama approved the Bush administration-negotiated deal in May 2009, and the US-

UAE 123 Agreement for Peaceful Nuclear Cooperation came into force in December. The UAE also signed

a memorandum of cooperation with Japan to explore possibilities of developing peaceful nuclear energy.

This follows similar agreements with Britain and France in the past.

The UAE has published a policy document evaluating and developing peaceful nuclear energy for civilian

usage, emphasising the country’s transparent policies and readiness to abide by all related safety and

security measures. In a related development, the IAEA Board of Governors approved the UAE’s ratification of

the additional nuclear inspection measures known as the Additional Protocol, which ensures commitment

to the NPT. (See chapter on Nuclear Programme for further information).

Other International PartnershipsAnother key area of UAE’s cooperation has been in the global fight against terrorism. While emphasising

the need for a clear definition of terrorism, the UAE has also insisted that state-sponsored terror should not

be tolerated. In the process, it has collaborated with countries that have been victims of terrorism through

effective information exchange and discussing ways of alleviating social and economic deprivation, which

could nurture terrorist recruitment. Further, international partnerships have intensified in the areas of money

laundering and human trafficking.

U N I T E D A R A B E M I R A T E S 2 0 1 0

humanitarian

aidThe UAE leadership has translated development and humanitarian aid into a foreign policy instrument.

The philosophy behind this is two-fold: first, it is dictated

by an Islamic belief that helping those in need is a primary

duty; and second, that part of the country’s wealth from oil

and gas should be devoted to assisting other countries and

individuals that are less fortunate.

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50 > UAE 2010

Assistance ContinuesIn spite of the impact of the financial and economic crisis on the economies and development projects in

the region, the UAE continued its humanitarian, relief and development assistance programmes in many

countries. This was conducted either directly by the Government and its affiliated organisations or through

the donor groups and the United Nations Office for Humanitarian Assistance. In addition, the UAE continued

its contributions to the programmes of regional agencies and international organisations aimed at alleviating

the suffering of several countries from high food prices, poverty, illiteracy and the spread of diseases. The fact

that the UAE is among the key donors and contributors to UN programmes and activities was acknowledged

by the UN Secretary-General Ban Ki-Moon during a visit to the UAE in February 2009. The UN Chief praised

the UAE’s humanitarian stance and its efforts in alleviating the sufferings of people in various parts of the

world during natural disasters and human conflicts.

As part of its humanitarian aid policy, the UAE has contributed to building hospitals and townships as well

as assisting in relief operations in strife-torn Iraq, Palestinian territories and Lebanon. Further, organisations

51 > humanitarian aid

like the Abu Dhabi Fund for Development (ADFD), Red Crescent Authority (RCA), Zayed Foundation for

Charitable and Humanitarian Aid, Khalifa bin Zayed Charity Foundation, Sheikha Fatima bin Mubarak Fund

for Refugee Women, Mohammed bin Rashid Al Maktoum Charity and the Sharjah Charity Association and

Humanitarian Foundation provide billions of dollars to support disaster- and drought-stricken areas. In

addition, a number of private humanitarian efforts have also been undertaken.

ADFDOne of the leading development grant agencies is ADFD, which was established in 1971 to extend assistance

to Arab, Islamic, and friendly developing countries to face the difficulties, challenges, and economic

development problems. The main activity of the Fund is to provide economic assistance in the form of

loans on concessionary terms, grants or contributions to project capital. The Fund particularly strives to help

achieve sustainable economic growth and reduce poverty by providing financial aid, forging partnerships

in the public and private sectors, and adopting international best practices to ensure aid effectiveness.

52 > UAE 2010

Since its foundation, the ADFD has provided more than Dh13 billion (US$3.5 bn) to 207 development

progammes. In addition, the Fund also manages the loans and grants of the Abu Dhabi government by

assisting in designing, executing, supervising and assessing about 60 government-financed projects worth

over Dh10 billion (US$2.8 bn).

During 2009, the ADFD provided financial assistance to various development projects in Morocco, Burkina

Faso, Tanzania, Bangladesh, Palestine, Benin, Yemen, Afghanistan, Sudan, Eritrea, among others.

Red Crescent AuthoritySimilarly, the RCA, established in 1985, continues to give impetus to humanitarian efforts, under the stewardship

of Sheikh Hamdan bin Zayed Al Nahyan, Ruler’s Representative in Abu Dhabi’s Al Gharbia (Western) Region.

The RCA has funded and implemented 446 charity projects in countries throughout Africa and Asia apart

from a number of projects to help the Palestinian people. Some of its most effective activities include

providing drinking water in the countries hit by drought and desertification, as well as equipping hospitals

in remote areas of underprivileged countries and distributing relief material for flood victims. These efforts

have given the RCA the distinction of being one of the top ten member organisations of the International

Committee of the Red Cross in terms of the amount of relief assistance provided.

In September the RCA announced that apart from its international activities, it is also bracing for a new era

of challenge in the UAE. According to Sheikh Hamdan bin Zayed:

“The RCA should strive to intensify its action within the UAE and boost its programmes to meet the increasing demand of humanitarian work locally. A qualitative leap is needed in the area of development projects the RCA is carrying out in hot spots. There is also a need to shift humanitarian works from mere urgent assistance to sustained development projects that build capacity of targeted beneficiaries to overcome economic conditions.”

Other EffortsIn other efforts, the Dubai Cares campaign continued its activities after raising about Dh3.65 billion (US$1

bn) during an eight-week charity drive in 2007 to help educate one million children in poor countries

around the world. This is a contribution towards achieving the United Nations Millennium Development

Goals of providing primary education to every child by 2015. Similarly, Noor Dubai – administered by the

53 > humanitarian aid

Dubai Health Authority – cooperates with the World Health Organisation and International Agency for the

Prevention of Blindness in their mission to treat and prevent blindness.

The UAE Government also participates in a number of other multilateral aid-giving institutions, including

the International Development Agency, OPEC Fund for International Development, Arab Gulf Fund for the

United Nations, Arab bank for Economic Development in Africa, the Abu Dhabi-based Arab Monetary Fund

and Islamic Development Bank. In recent years, however, the emphasis has been on humanitarian assistance

for those affected by natural disasters or conflict and poverty.

Overall, during the last three-and-a-half decades, the UAE has contributed more than Dh255 billion (US$70

bn) in loans, grants and assistance for development projects in nearly 100 countries around the world.

While much of the assistance is provided on a government-to-government basis, the country is also a

major contributor to international agencies, having made Dh100 billion (US$27 bn) available through the

International Monetary Fund and the World Bank.

The Government has established a new body to coordinate all the humanitarian efforts undertaken by the

UAE. Called the UAE Foreign Aid Coordination Office (FACO) and set up in collaboration with the UN Office

for the Coordination of Humanitarian Affairs, the new forum is chaired by Sheikh Hamdan bin Zayed Al

Nahyan. This will lead to the UAE becoming more involved at the multilateral level rather than focusing on

support through traditional bilateral means.

U N I T E D A R A B E M I R A T E S 2 0 1 0

the economy

The year 2009 proved to be a tumultuous one in the global economy. From the dark depths of the recession, which saw banks around the world require bail outs and job losses mount, the first shoots of recovery emerged in the latter half of the year. The UAE has been close to the forefront of this recovery, with its economy reinvigorated thanks to the strong response of monetary and fiscal policymakers and an increase in oil prices from a low point in late 2008 and early 2009.

The swift and decisive action of the UAE Government to support the local economy, under a programme initially launched in late 2008, when the global economic crisis first began, was well-demonstrated in the aftermath of the announcement by Dubai government-controlled conglomerate Dubai World in late November 2009 that it was seeking a six-month extension on debt payments. The Abu Dhabi government stepped in to provide Dubai’s government with a US$5 billion (Dh18.35 bn) loan that was used, in part, to allow Dubai World to reduce its indebtedness, both to overseas bond holders and to local suppliers, a move that eased concerns among international investors.

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56 > UAE 201056 > UAE 2010

GDP GrowthAs one of the leading suppliers of crude oil, the UAE had initially been insulated from the global downturn by

high oil prices, which soared to a record US$147 in July 2008. However, the country was eventually affected

by the deepening global downturn that led to a slump in the demand for oil, dragging prices to less than

a third of the July 2008 peak. In the final months of 2008 the tremors reverberating through international

economies were finally felt in the region with the widening of sovereign risk spreads, the reversal of large

private capital inflows and a sharp downturn in stock market indices.

Further proof of the UAE’s close integration in the global economy was provided by a decline in the country’s

construction and property sectors, mainstays of the country’s economic growth. All these factors meant

that the UAE’s growth in 2009 was sharply down from previous years. The Ministry of Economy in October

2009 forecasted growth of 1.3 per cent for the year. The IMF upgraded its GDP prediction in November

2009 to a contraction of about 0.2 per cent instead of the 0.6 per cent decline it had forecast in May. The

IMF predicted, however, that the UAE would return to positive figures in 2010 with an expansion of 2.4 per

5%

10%

15%

20%

25%

30%

35%

40%

Restaurants and hotels

Wholesale retail traide and repairing services

Financial sector

Manufacturing industries

Construction sector

Oil & gas sector

Overall

GDP growth during 2008, overall and for selected sectors

57 > the economy57 > the economy

cent. Other analysts are more optimistic: the Economist Intelligence Unit is predicting a 3.4 per cent growth

rate, whilst Emirates Industrial Bank expects the economy to grow by up to 5 per cent in 2010.

The figures for 2009 were in marked contrast with those for 2008 when the growth in the UAE’s GDP

reached 7.4 per cent. Leading that rise was the oil and gas sector, which expanded by 35.6 per cent, mainly

thanks to the increase in oil prices. Other strong growth sectors in 2008 included the construction sector

(26.1 per cent), manufacturing industries (17.2 per cent), the financial sector (15.9 per cent), wholesale retail

trade and repairing services (18.7 per cent), and restaurants and hotels (15.1 per cent).

SECTORS 2008* 2007*

Non-financial corporations sector• Agriculture, livestock and fishing

• Mining and quarrying

• Manufacturing industries

• Electricity, gas and water

• Construction

• Wholesale retail trade and repairing services

• Restaurants and hotels

• Transports, storage and communication

• Real estate and business services

• Social and personal services

851,502 8,852

345,800

113,245

13,579

69,218

148,415

14,533

46,973

78,497

12,390

685,232 8,692

255,130

96,634

11,566

54,882

125,022

12,631

41,219

68,676

10,780

Financial corporations sector 62,648 54,065

Government services sector• Domestic services of households

37,857 4,014

34,1963,674

Less: imputed bank services 21,759 19,141

Total 934,262 758,026

Total non-oil sectors 590,130 504,259

Source: Ministry of Economy. *Estimated data

Gross Domestic Product by Economic Activities (in millions of dirhams)

58 > UAE 2010

TradeThe UAE’s trade balance in 2008 increased by 35.3 per cent from Dh170.85 billion in 2007 to Dh231.09 billion.

This increase was largely due to a 33.9 per cent rise in the value of exports and re-exports. The value of oil

exports rose by 39.7 per cent in 2008 to Dh313.74 billion, mainly as a result of a rise in average oil prices that

went up by 27.3 per cent from US$70.07 a barrel in 2007 to US$90 in 2008. Gas exports also increased by

37.1 per cent to Dh39.08 billion.

The country’s free zones saw a 16.4 per cent increase in exports, which reached Dh97.46 billion in 2008.

Meanwhile, re-exports reached Dh345.78 billion, a rise of 33.4 per cent. Rising domestic demand due to

increases in population and income levels, together with a positive growth in the re-export trade, helped

to push the value of imports up by 33.4 per cent to reach Dh735.70 billion.

In 2008, the UAE’s debit balance of services, which includes freight, insurance, tourism, travel and government

services, rose 27.6 per cent to Dh159.48 billion, compared to Dh124.96 billion the previous year.

5%

10%

15%

20%

25%

30%

35%

40%

Gas exports

Oil exports

Exports and re-exports

Overall

Increase in trade balance during 2008

60 > UAE 2010

InflationInflation in the first 11 months of 2009 stood at 1.7 per cent, significantly down from previous years. Lower

housing prices and food costs contributed to deflationary pressures in the economy. Housing costs make

up nearly 40 per cent of the consumer price index.

Consumer prices posted a slight gain in November 2009 after declines in the previous four months. The

price of a basket of consumer goods and services rose 0.2 per cent in November from the same period

the previous year, according to the National Bureau of Statistics. The official inflation rate is calculated by

measuring the percentage change in prices in a representative basket of goods and services consumed by

the average household in the UAE. Economists expect deflationary pressures to subside in 2010 as a result of

continued international weakness of the US dollar, to which the dirham is pegged, and higher food prices.

In 2008 inflation stood at 10.8 per cent, as substantial revenues from higher oil prices fuelled economic

growth, creating shortages of property and services. At the same time, the weaker dollar and higher global

food prices made imports more expensive.

As the impact of the global financial crisis began to ease, consumer confidence improved. A poll conducted

by research company Nielsen indicated that consumer sentiment during September and October 2009

rose a record 13 points from six months previously, reaching 102. The UAE was the eighth most optimistic

country out of the 54 in the global survey.

To guard against future price rises and commodity shortages, the Government is pushing ahead with plans

to build up a strategic food reserve of essential items. In an effort to ward off inflation in the short-term,

annual rental increases have remained capped at 5 per cent in both Dubai and Abu Dhabi, while controls

on the prices of basic commodities have been maintained.

The UAE Central Bank, which has so far resisted gearing its monetary policy towards raising interest rates,

has indicated that its policy would aim to keep official interest rates at low levels in order to revive economic

growth. Meanwhile, persistent dollar weakness led the US Federal Reserve to signal it will not raise interest

rates for the ‘foreseeable future’.

61 > the economy

-6

-4

-2

0

2

4

6

8

10

Other goods and services

Hotels and restaurants

Education

Recreation and cultural service

Communication

Transportation

Medical care and health services

Furniture and other items

Housing

Clothing and Footwear

Food and beverages

All items

Source: Ministry of Economy.

Inflation rates for the first 11 months of 2009

62 > UAE 2010

2007 2008*

Current account 72,132 81,817

Trade balance (FOB) 170,852 231,092

Total exports of hydrocarbons

• Oil exports

• Petroleum products exports

• Gas exports

271,128

224,647

17,981

28,500

374,915

313,735

22,100

39,080

Total goods exports

• Free zone exports

• Other exports 1

125,768

83,700

42,068

157,814

97,455

60,359

Re-exports 2 259,124 345,779

Total exports and re-exports (FOB) 656,020 878,508

Total imports (FOB) -485,169 -647,417

Total imports (CIF)• Other imports 3

• Free zone imports

-551,328-395,718

-155,610

-735,701-513,980

-221,721

Services (Net) -95,359 -124,244

Credit

• Travel

• Transportation

• Government services

29,600

-22,300

-5,000

2,300

35,240

-26,301

-6,598

2,341

Debit

• Travel

• Transportation

• Government services

• Freight and insurance

-124,959

-41,400

-15,000

-2,400

-66,159

-159,484

-48,800

-20,000

-2,400

-88,284

Estimates of UAE Balance of Payments (in millions of dirhams)

63 > the economy

2007 2008*

Investment income (net)

• Banking system 4

• Private non-banks

• Public sector enterprises

• Foreign hydrocarbon companies in UAE

30,750

8,150

-2,800

46,300

-20,900

13,970

4,870

-2,700

30,000

-18,200

Transfers (net)

• Government transfers

• Workers’ transfers

-34,111

-2,159

-31,952

-39,000

-2,300

-36,700

Capital and financial account 105,424 -203,061

Capital account - -

Financial account

A. Private sector enterprises

A.1 Direct investment

A.1.1 Outward

A.1.2 Inward

A.2 Portfolio investment

A.3 Banks

A.3.1 Securities

A.3.2 Other investment

A.4 Private non-banks

B. Public sector enterprises

Net errors and omissions

105,424

217,324

-1,400

-53,500

52,100

5,300

178,324

-1,157

179,481

35,100

-111,900

5,683

-203,061

-94,861

7,700

-58,100

50,400

8,100

-44,861

4,731

-49,592

-50,400

-108,200

-51,241

Overall surplus or deficit 183,238 -172,485

Changes in reserves -183,238 172,485

Net foreign assets with Central Bank -183,127 172,287

Reserve position with IMF -111 198

Source: Central Bank. *Preliminary estimates

64 > UAE 2010

GCC Monetary UnionIn May 2009, the UAE decided not to take part in the planned monetary union amongst members of the

Gulf Co-operation Council (GCC). Oman had withdrawn two years previously. Explaining its decision, the

Government said it had fundamental reservations about the currency plans and the role of the monetary

council. It also objected to the decision to base the location of the regional Central Bank for the new currency

in Saudi Arabia, rather than in Abu Dhabi.

Industry and DiversificationDiversification remains the watchword for future growth of the UAE’s economy as it seeks to reduce its

reliance on oil. The non-hydrocarbon sectors accounted for 63 per cent of GDP in 2008, despite high oil and

gas prices, contributing US$590 billion to the economy. The UAE is hoping to further reduce the contribution

of the hydrocarbons sector to approximately 20 per cent in the next ten to 15 years, through promoting

growth elsewhere in the economy.

In 2009, Abu Dhabi unveiled its 2030 Economic Vision, setting out a roadmap for achieving greater economic

diversification. The plan aims to reduce Abu Dhabi’s reliance on the oil sector as a source of economic

activity and, instead, instill a greater focus on knowledge-based industries.

Manufacturing and industry continues to be an important component of the country’s ambitions for

economic transformation, building on already thriving sectors such as aluminium smelting, ceramics and

pharmaceuticals. A major step towards reaching this goal was achieved in 2009 with the announcement

of plans by Abu Dhabi’s Advanced Technology Investment Company (ATIC) to purchase Chartered

Semiconductor Manufacturing and thus create the second-largest chip-maker in the world. When the

Dh6.56 billion acquisition is completed, Chartered Semiconductor will be merged with Globalfoundries, the

chip manufacturer that ATIC runs in a joint venture with the US chip company AMD.

The emirate has also set its sights on establishing itself as a leading centre for aerospace manufacturing.

Mubadala Development Company, the strategic investment arm of the Abu Dhabi government, plans to

begin operations at an aerostructure manufacturing plant it is building by the end of 2010. Mubadala is

also progressing with an US$8 billion joint venture with GE, the American conglomerate, that will provide

commercial finance in the region.

66 > UAE 2010

Ra’s al-Khaimah Investment Authority (RAKIA) announced in December 2009 that it is planning to launch

a concept of themed industry zones to create clusters of manufacturing facilities in Ra’s al-Khaimah. The

proposed clusters will cover sectors including food, chemicals, plastic and rubber, minerals, metals, electrical

equipment, transportation and logistics.

Fujairah unveiled proposals for a virtual free zone in the emirate, the first in the UAE, which will let

internationally owned companies do business for less than that charged by established free zones. Part

of the Fujairah Creative City free zone, Virtuzone allows international entrepreneurs registered with the

zone to operate their businesses from a home or office anywhere in the UAE.

Blessed with 95 per cent of the country’s oil reserves and 92 per cent of its gas reserves, Abu Dhabi is making

a concerted effort to use its hydrocarbon revenues to harvest more of its energy from renewable sources

(see chapter on Renewable Energy). To this end, the emirate’s government has set a target of supplying

67 > the economy

7 per cent of Abu Dhabi’s power needs from renewable energy sources by 2020. Government-owned

future energy company Masdar will be a key contributor toward meeting this target, both in terms of the

company’s investments and in the development of low carbon energy supplies.

The first phase of Masdar’s Dh55 billion carbon-neutral city in the emirate is due for completion in early

2010. It will eventually house 40,000 residents and 50,000 daily commuters working at some 1500 green

energy firms. Masdar is also investing heavily in the fast-growing technology of thin-film solar energy panels

involving the building of a plant in Abu Dhabi capable of manufacturing enough panels each year to

produce 130mw. Notwithstanding the impact of the global financial crisis, the financial sector continues to

play an important part in the UAE’s economy, especially in Dubai. The Dubai International Financial Centre

and the country’s stock exchanges in Abu Dhabi and Dubai are continuing to provide springboards for future

growth in the sub-sector (see chapter on Financial Services). In addition, the UAE Government is in the final

stages of preparing an industrial law, which is also expected to encourage the creation of national industries.

68 > UAE 2010

Real EstateEconomic activity in the construction and property sectors remains a significant driver of growth, despite

a slowdown in the development of some projects from the later stages of 2008 into 2009 because of the

impact of the global downturn. A number of major projects were completed in 2009, one of the most

impressive being Yas Island, a leisure resort in Abu Dhabi and home to the Yas Marina circuit, which hosted

the Formula One Grand Prix in November 2009. Major infrastructure schemes were completed, including

the Dh28 billion Dubai Metro, the driverless transport system spanning the heart of the emirate; Sheikh

Khalifa Bridge, linking Abu Dhabi Island with Saadiyat and Yas islands; and the Palm Jumeirah Monorail. The

tallest building in the world, Burj Khalifa, in Dubai, was inaugurated in the first week of 2010.

However, the global economic crisis did leave its mark on the country’s property market, with prices falling

sharply, by as much as 50 per cent in some Dubai projects, and with some projects being placed on hold

or cancelled, leading to job cuts in the construction sector. But as the downturn set in, the Government

was quick to react. Plans were unveiled for reforms to the sector, with the development and enforcement

of more protective regulations and strong action against wayward developers. A number of court cases

against officials of major Dubai developers were under way at the end of the year as the Government

sought to crack down on corruption and to increase transparency.

The Dubai government-backed property firms were among the first to benefit from a US$20 billion

borrowing programme funded by the UAE Central Bank and the Government of Abu Dhabi. With supply

continuing to outstrip demand, however, some analysts have predicted that full recovery in the property

sector will not take place until 2012, at the earliest.

TourismTourism is an important growth sector in the whole of the UAE economy. Abu Dhabi has recently re-

branded itself and prime quality hotels and leisure resorts are increasingly important throughout the

country; from the island resort of Sir Bani Yas in western Abu Dhabi, to the desert resorts of Qasr Al Sarab in

the Liwa, and Al Maha and Bab al-Shams, in Dubai. There are also a host of coastal resorts throughout the

UAE, including the east coast, as well as flagship projects such as Emirates Palace Hotel, Burj al-Arab, Madinat

Jumeirah, and the Burj Khalifa, with the result that the UAE has much to offer the most demanding visitors.

The country is expected to attract 11.2 million tourists in 2010, underpinning the success of its attempts to

boost investment in the hospitality industry.

70 > UAE 2010

In 2009, the UAE climbed 14 places in the ‘Doing Business’ report compiled by the World Bank and its

International Finance Corporation. The UAE’s rose to thirty-third position in the global rankings for regulatory

reform, partly as a result of the Government’s decision to abolish a Dh150,000 minimum capital requirement

for some start-ups.

Two other key reasons for the country’s rise was a streamlining of the process involved in obtaining

construction permits and the improving of capacity at Dubai ports. The internationally recognised report

assesses countries on how easy it is for small and medium-sized enterprises to conduct business.

Inward InvestmentBetween 2003 and 2008 the UAE was the third largest recipient of foreign direct investment (FDI) in

West Asia, behind Saudi Arabia and Turkey, according to the UN Conference on Trade and Development

Doing Business 2010 ranking

Doing Business 2009 ranking

Doing Businesschange in rank

Doing Business 33 47 +14

Starting a Business 44 118 +74

Dealing with Construction Permits 27 54 +27

Employing Workers 50 45 -5

Registering Property 7 7 0

Getting Credit 71 68 -3

Protecting Investors 119 114 -5

Paying Taxes 4 4 0

Trading Across Borders 5 13 +8

Enforcing Contracts 134 135 +1

Closing a Business 143 143 0

Source: Doing Business 2010 report, The World Bank Group.

Doing Business 2010 Report

71 > the economy

(UNCTAD). The country attracted an inflow of around Dh51.4 billion in 2008, UNCTAD said in a study on

West Asian FDI published in its annual report for 2009. But it warned that a lack of activity in global credit

markets was likely to lead to a decline in FDI in 2009.

The Government has been active in its efforts to improve conditions to meet with the aspirations of

international investors. A planned new companies law is expected to lead to a relaxation of foreign

ownership rules. Once implemented in 2010, the law will enable international firms in certain sectors, such

as industry, to be allowed to own a greater stake in businesses they establish in the Emirates.

The law now requires foreigners to have an Emirati as a sponsor and limits them to a maximum 49 per

cent ownership of businesses. The exceptions are free zones, where foreign companies can have 100 per

cent ownership.

-10

0

10

20

30

40

50

60

70

80Enforcing contracts

Trading across borders

Protecting investors

Getting credit

Employing workers

Dealing with construction permits

Starting a business

Doing business

Doing Business Change in Rank

73 > the economy

Outward InvestmentInvestment in overseas markets has long been integral to the UAE’s strategic drive to create a security net

for future generations who will one day face the prospect of a depletion of the country’s hydrocarbon

reserves. Among the major international investment bodies in the Emirates are:

Abu Dhabi Investment Authority (ADIA)ADIA’s mission is to secure and maintain the current and future prosperity of the emirate through management

of its investment assets. ADIA is a leading international investor and for the past 33 years has established itself

as a responsible and trustworthy investor and a strong supplier of capital. ADIA oversees a substantial global

diversified portfolio of assets across varying sectors, regions and asset classes, including public listed equities,

fixed income, private equity and property. It does not seek active management of the companies it invests in,

only long-term sustainable financial returns.

Abu Dhabi Investment Council (ADIC)Responsible for investing part of Abu Dhabi’s surplus financial resources, ADIC employs a globally diversified

investment strategy focused on gaining positive capital returns across a range of asset classes.

Invest ADA subsidiary of Abu Dhabi Investment Council, Invest AD, a government investment vehicle similar to ADIA,

was established in1977 as Abu Dhabi Investment Company. In 2007, its mandate and its name changed when

the Council decided to allow outside investors to put their money in alongside it, making it perhaps the only

sovereign fund in the world to welcome external funds. Invest AD’s business now includes a proprietary

investment arm that continues to invest on behalf of the government and a third-party investment division

for attracting capital from external investors.

The Investment Corporation of Dubai (ICD)Investing to create stability and foster diversification, the ICD owns 60 per cent of Borse Dubai, a holding

company that in turn acts as a holding company for Dubai Financial Market and NASDAQ Dubai.

Dubai HoldingOne of Dubai’s major holding companies, Dubai Holding is divided between the Dubai Holding Commercial

Operations Group (DHCOG) and the Dubai Holding Investment Group (DHIG), formed in 2009 when

Left: The Dubai section of Sheikh Zayed Road, a major arterial route connecting many of the most significant developments in the UAE .

74 > UAE 2010

Dubai Group and Dubai International Capital (DIC) were combined. In August, Dubai Holding said it was

reorganising its companies into property, business park, hospitality and investment units.

Dubai Holding Commercial Operations Group (DHCOG)Property developers Dubai Properties Group, Sama Dubai and Tatweer fall under DHCOG. In addition,

DHCOG holds the hotel operator Jumeirah Group and the business park operator TECOM Investments.

Dubai Holding Investment Group (DHIG)DHIG was formed as a result of combining the previously separate entities of Dubai Group and Dubai

International Capital (DIC). DHIG also now controls six financial companies that are under the responsibility

of Dubai Group including Dubai Capital Group, Dubai Financial Group, Dubai Investment Group, Dubai

Banking Group, Dubai Insurance Group and Noor Investment Group.

Focused on the private equity asset class, DIC operates through global buy-outs specialising in secondary

LBOs in Europe, North America and Asia. It also focuses on MENA investments including LBOs, funds and co-

investments, infrastructure, growth and development capital. Another part of its work involves taking equity

investments in equity quoted companies. DIC owns stakes in the Travelodge hotel chain, the Middle-Eastern

operations of the property consultancy CB Richard Ellis, and the UK engineering company Doncasters. In

October 2009 DIC borrowed Dh2.02 billion from international banks as part of a two-year loan.

Dubai WorldDubai World has for many years been at the forefront of Dubai’s rapid growth. As a holding company, it

operates in a diversified spectrum of industrial segments. Its investments fall into four main sectors: transport

and logistics, drydocks and maritime, urban development, and investment and financial services. Its portfolio

includes some of the world’s best known companies: DP World, one of the largest maritime terminal operators

in the world; Drydocks World and Dubai Maritime City; Economic Zones World, which operates several free

zones around the world; Nakheel, the property developer behind The Palm Islands and The World; Limitless,

the international real estate master planner; Leisurecorp, a sports and investment group; Dubai World Africa;

and Istithmar World.

Dubai World’s request in November 2009 to reschedule its debts and restructure the company did not

include Infinity World, Istithmar World, and Dubai Ports World and Free Zones World (see chapter on

Financial Services for more information).

75 > the economy

Mergers and AcquisitionsMerger and acquisitions totaling more than US$20 billion (Dh73.44 bn) took place in the UAE in 2009. Of

these, US$15.74 billion, or more than 77 per cent, were acquisitions made by UAE-based firms, while the

remainder comprised foreign companies acquiring UAE firms.

Abu Dhabi-based International Petroleum Investment Company (IPIC) were top of the list with US$6.4 billion

worth of acquisitions, followed by Aabar Investments, which made US$2.93 billion worth of acquisitions. Aabar

is also considering the purchase of a 70 per cent stake in the Dubai-based Arabtec Holding Company.

IPIC’s 32.5 per cent acquisition in April of Spain’s Compania Espanola de Petroleos from Banco Santander

for more than US$3.8 billion was the largest merger and acquisition deal involving a UAE firm in 2009,

followed by IPIC’s sale of its 70 per cent stake in Hyundai Oilbank Company to South Korean Hyundai Heavy

Industries in November for just under US$3.8 billion.

Atic’s US$2.9 billion takeover of Singapore’s Chartered Semi-conductor Manufacturing from Temasek Holdings

in September; Aabar’s US$2.65 billion acquisition of a 9.10 per cent in Germany’s Daimler in March; and IPIC’s

US$2 billion acquisition of Canadian Nova Chemicals Corporation in February were the top five deals in the

past year involving UAE companies.

U N I T E D A R A B E M I R A T E S 2 0 1 0

financial

services

The global financial crisis continued to pose challenges for the UAE’s financial services sector in 2009. As already indicated in the chapter on The Economy, the initial impact of the downturn was felt in the UAE as large private capital inflows, which had built up on the expectation of a revaluation of the dirham against the US dollar, were withdrawn in late 2008.

Against this backdrop, a widening of sovereign risk spreads, declines in local stock markets and the drying

up of financing for corporations, which slowed growth in the property and construction sectors, deepened

the crisis. Declines in property values, especially in Dubai, also affected many banks that had extensive

investments in the sector. Partly as a result of these factors, there was a tightening of liquidity.

page 6 | uae 2010 U N I T E D A R A B E M I R A T E S 2 0 1 0

78 > UAE 2010

Government SupportThe year began with hopes that steps taken by federal institutions in 2008 to restore confidence in the

financial system, including the UAE Central Bank Dh50 billion facility to support local lenders, and the UAE

Ministry of Finance Dh70 billion liquidity support scheme, would rekindle lending, buoy stock markets and

give a boost to economic activity.

The Federal Government had also announced in 2008 that it would make up to Dh120 billion available

to banks across the country under several lending programmes and guarantee deposits and inter-bank

lending for three years.

In February 2009 the Abu Dhabi Department of Finance injected Dh16 billion into five of the emirate’s

biggest banks. It included Dh4 billion each for the National Bank of Abu Dhabi, Abu Dhabi Commercial

Bank and First Gulf Bank and Dh2 billion each for Union National Bank and Abu Dhabi Islamic Bank.

Measures taken by Government helped to firm up balance sheets at banks, although bank profits fell in

the first quarter, and an emergency financial committee was set up by the Ministry of Economy to consider

further actions to support lenders.

‘We are taking things in stages,’ commented Sultan Al Mansouri, the Minister of Economy, in April. ‘The first

stage was understanding the size of the need for a liquidity injection into the banking system. The second

phase is to evaluate our performance in terms of banking, in terms of trade, in terms of the economy as a

whole, in the first quarter of 2009.’

As the year progressed, banks reported an increase in defaults and missed payments on commercial loans,

many of which were to the property sector, which was dealing with a steep fall-off in real estate prices, caused

by a withdrawal of funds by the mainly foreign investors who underpinned the sector’s five-year surge. With

investor interest at a low and banks reluctant to lend, prices dipped and many projects were placed on hold.

Banks in the UAE also faced problems with their consumer loan books. A rise in what bankers call ‘skips’, or

expatriates who flee the country and leave large debts behind, became a concern in the early part of 2009.

That was followed by a rise in defaults on unsecured personal loans, car loans, and finally an increase in late

or missed payments on mortgages.

79 > financial services

As a result, the UAE’s listed banks took a cautious approach by reporting higher-than-usual provisioning

against bad loans. In the first half of 2009, banks reported over US$1.3 billion in provisions that otherwise

would have been recorded as profits.

Meanwhile, the UAE’s financial sector continued to be affected by global events and crises. One such crisis

in Saudi Arabia, involving two large conglomerates – the Saad Group and Ahmad Hamad Al Gosaibi and

Brothers – affected a number of UAE banks that had exposure to these companies’ loans, although all were

able to manage their exposure.

In another attempt to spur lending, the UAE Central Bank in October re-organised the panel of lenders that

set the Emirates interbank offered rate (Eibor), the average interest rate that banks charge when they lend

to one another. The measure proved effective at lowering rates to a level more reflective of the market,

improving conditions for lending to take place.

With the financial crisis continuing to impact the loan books of some banks, the need for an extra capital

cushion in the banking system became greater. To address this, the Central Bank instructed lenders that

from 2010 they must start complying with Basel II regulations on capital adequacy for banks.

The new requirements, which will bring UAE banks in line with their US and European counterparts, will

require lenders to pay more attention to risk control and management. As well as differentiating further

between types of risk, the regulations also mean lenders have to improve their disclosure on risks on their

balance sheets.

To help revive the mortgage market, the Government announced plans to merge the country’s two biggest

lenders, Amlak and Tamweel. The merged entity is expected to be given a banking licence to enable it to

take deposits from customers for savings accounts. The revival of the two lenders is viewed as pivotal to a

recovery in the housing market.

Bond IssuancesAs the year wore on, the focus began to shift to the need to repay loans obtained from the market by

government-owned conglomerates. Many of the developers owned by these holding companies had

borrowed heavily from local and international banks to finance property development.

80 > UAE 2010

In February 2009, the government of Dubai sold US$10 billion in bonds to the Central Bank to help companies

it controls make debt payments and pay contractors. To oversee the distribution of these funds, the Dubai

Financial Support Fund (DFSF) was established in July 2009. Assistance was to be given on commercial

terms, and only to firms with strong long-term growth prospects. In October the emirate announced plans

to sell an additional US$6.5 billion in bonds to private investors.

On 25 November 2009, the Dubai government announced that it had lined up US$5 billion in financing

from the National Bank of Abu Dhabi and Al Hilal Bank, both of which are controlled by one of Abu Dhabi’s

largest sovereign wealth funds, the Abu Dhabi Investment Council. The two banks agreed to buy US$1billion

in Dubai bonds immediately, and to purchase the remaining debt over the next year.

Dubai successfully managed a number of large debts in 2009, including a US$3.4 billion refinancing of the

exchange operator Borse Dubai’s debt in February and the repayment of a US$1 billion Dubai Civil Aviation

Authority Islamic bond in November.

Abu Dhabi was also active in the bond market in 2009. In March it raised its first US$3 billion as part of

a US$10 billion bond programme, which it plans to initiate over the next two years. The success of the

sovereign debt issuance opened the way for government-related entities to tap the bond market.

In May, Mubadala Development, the government’s strategic investment arm, launched a US$1.25 billion bond

with a five-year maturity and a ten-year US$500 million bond. The Tourism Development and Investment

Company (TDIC) sold a US$1 billion five-year note in July and a US$1 billion, five-year sukuk in October 2009.

Private Equity Private equity firms in the UAE continued to have a challenging year. In general, bond and sukuk issuances

were down, and acquisition activity was slower than usual. Many of the UAE’s largest private equity firms

focused increasingly on managing the companies in their existing portfolios instead of making new

acquisitions. Private equity funds in the Middle East made US$3.9 billion in investments in 2007, but only

invested US$500 million in 2008.

Stock MarketsAgainst a backdrop of reduced economic activity and difficulties with the repayment of the corporate debt

of some of the country’s largest companies, the UAE’s stock markets also endured a rough 2009. Stocks

82 > UAE 2010

listed on the Dubai Financial Market ended the year up 10.2 per cent, but were still more than 70 per cent

down from the previous year’s highs. Stocks on the Abu Dhabi Securities Exchange rose by 14.7 per cent

in 2009, but were still down 46 per cent from 2008 highs.

Further SupportAs already mentioned in the chapter on The Economy, global markets were impacted when Dubai World

stated in late November that it was seeking a standstill agreement with creditors on US$26 billion in debt.

However, in a move aimed at rebuilding confidence, on 14 December 2009, Dubai unveiled a US$5 billion

(Dh18.35 bn) rescue package from the Abu Dhabi government to enable the company to meet a portion

of its financial obligations, including the US$3.5 billion Islamic bond payable by Nakheel on that day. The

remainder of the package, to be transferred to the Dubai Financial Support Fund, is being used to make

interest payments on outstanding loans and bonds, to fund daily operations and to meet trade finance

agreements and repay contractors.

On the same day, H.H. Sheikh Mohammed bin Rashid Al Maktoum, Vice President of the UAE and Ruler of

Dubai, issued a decree establishing a tribunal of judges to supervise financial claims connected with the

debt restructuring of Dubai World. Under the ruling, creditors of Dubai World will be required to make their

case in front of a special court at Dubai International Financial Centre (DIFC), controlled by regulations which

have been adapted to reflect insolvency laws in the US and UK.

Meanwhile, Dubai World began meetings with creditors to restructure US$22 billion of debt including

discussions on asset sales and funding requirements. In a move that helped further allay investors’ anxiety,

the UAE Central Bank stepped in to provide support for those lenders exposed to the restructuring. It stated

that it stood behind both local and foreign banks in the UAE, establishing an emergency liquidity facility for

banks owed money.

The problems at Dubai World capped an eventful year in finance for the UAE, one that saw financial

firms struggling to return to profitability in the wake of the financial crisis and one that saw considerable

boardroom restructuring and new senior management appointments.

83 > financial services

Jan 2009

Feb 2009

Mar 2009

Apr2009

May2009

Jun2009

Jul2009

Aug2009

Sep2009

Oct2009

Nov 2009

Certificate of deposits held by banks

32.7 37.2 39.4 42.3 53.1 58.3 65.5 64.6 75.5 74.6 69.6

Total bank assets * (net of provisions)

1440.0 1462.2 1466.5 1480.3 1498.4 1489.3 1496.3 1499.1 1521.7 1536.4 1551.6

Bank deposits 905.7 928.0 956.4 961.6 972.4 961.7 964.1 963.5 977.2 982.9 1002.7

Loans and advances (net of provisions)

995.7 992.0 995.4 997.7 1003.6 1009.0 1007.0 1013.8 1020.7 1020.5 1027.1

Personal loans 207.2 203.8 202.7 201.7 207.6 205.2 208.8 212.2 212.5 212.1 209.2

Letters of credit 105.9 106.0 107.4 111.0 111.4 105.5 109.1 104.0 106.1 102.6 106.9

Total private funds **

177.0 182.4 188.4 196.9 203.1 212.4 210.0 209.9 212.1 211.7 217.9

Specific provisions for NPLs (in billions of dirhams)

20.4 20.9 21.8 22.3 22.9 23.9 25.3 26.3 27.8 29.0 32.0

General provisions

6.0 6.1 6.4 6.9 7.3 9.6 8.3 8.5 8.9 9.3 9.3

Total investments by banks

118.7 116.0 115.5 114.8 117.3 115.3 117.4 116.0 117.1 119.5122.6

Capital adequacy ratio - banking system

16.2% 17.6% 18.0%

Source: Central Bank. * Net of interest in suspense,specific provisions and general provisions ** Excluding current year profit

Banking Indicators (in billions of dirhams)

Economic activity 2007 2008

1. Agriculture 1,605 2,391

2. Mining and quarrying 7,782 11,853

3. Manufacturing

3.1 Food, beverages and tobacco

3.2 Textile and leather products

3.3 Furniture and other wood products

3.4 Paper and paper products

3.5 Chemical and chemical products,

petroleum and petrochemicals

3.6 Basic metal products

(including aluminium)

3.7 Fabricated metal products,

machinery and equipment

3.8 Other manufacturing

3.9 Other industrial products

32,840

3,197

1,535

837

756

4,301

6,267

-

1,790

14,157

45,668

5,170

955

1,324

823

6,265

8,139

-

3,386

19,608

4. Electricity, gas and water 12,094 20,250

5. Construction 66,003 119,251

6. Trade

6.1 Wholesale

6.2 Retail

102,444

69,489

32,955

124,243

75,510

48,733

7. Transport, storage and communication 21,211 25,039

8. Financial Institutions (excluding banks) 35,637 72,772

9. Government 58,402 72,260

10. Personal loans for business purposes 106,449 160,103

11. Personal loans for consumption purposes 41,923 67,039

12. All others 2 140,304 203,516

Total 626,694 924,383

Source: Central Bank.

Bank Credit to Residents by Economic Activity (in millions of dirhams)

84 > UAE 2010

Source: Central Bank.

0

50,000

100,000

150,000

200,000

250,000

Others

Personal loans for consumption purposes

Personal loans for business purposes

Government

Financial Institutions (excluding banks)

Transport, storage and communication

Trade

Construction

Electricity, gas and water

Manufacturing

Mining and quarrying

Agriculture

20082007

85 > financial services

U N I T E D A R A B E M I R A T E S 2 0 1 0

oil and gasWith a fraction of the landmass of some of its Gulf neighbours, the UAE is nonetheless the region’s fourth largest exporter of crude oil, after Saudi Arabia, Iran and Iraq.

The UAE has the world’s sixth largest proven reserves of conventional crude oil and seventh largest proven

reserves of natural gas. Although only the world’s ninth biggest oil producer, it is the fifth largest net oil

exporter, with only Russia and Saudi Arabia exporting substantially more. The UAE’s crude exports closely

approach those of Iran, Iraq, and Kuwait, which all have bigger reserves.

page 6 | uae 2010 U N I T E D A R A B E M I R A T E S 2 0 1 0

88 > UAE 2010

In 2009, due to exemplary compliance with the record production cuts pledged by the Organisation of the

Petroleum Exporting Countries (OPEC) to stabilise oil markets, the UAE’s oil output fell to about 2.3 million

barrels per day (bpd) from 2.9 million bpd in 2008. Its gas production stood at roughly 7 billion standard

cubic feet per day (scfd).

Effects of Global Economic CrisisGlobal oil consumption contracted in both 2008 and 2009, during the worst global recession in decades.

As the economic crisis recedes, energy forecasters predict that oil demand will gradually recover, albeit

more slowly than previously expected. The International Energy Agency forecasts global oil demand of 105

million bpd in 2030, up 24 per cent from 85 million bpd in 2008.

Most energy economists see OPEC’s contribution to world oil supply expanding as production declines

from mature producing areas such as the North Sea. That bodes well for the plans of Abu Dhabi, which

accounts for roughly 95 per cent of the UAE’s oil and gas output, to boost production capacity by roughly

30 per cent to 3.5 million bpd by 2019. It means the new capacity should be needed and will not sit idle.

The prospect of maintaining costly spare capacity was not something that troubled most oil exporters

before 2009. Crude spiked to a record US$147 per barrel in July of 2008 partly because consumers worried

that new oil supplies could not be developed fast enough to keep pace with rapidly rising demand. During

2009, however, OPEC spare capacity quadrupled to about 6 million bpd as oil demand slumped. Unusually,

about a third of that idle capacity lay outside Saudi Arabia, the traditional OPEC swing producer.

The UAE idled approximately 20 per cent of its oil production capacity in 2009 in response to the deep cuts

into OPEC production quotas. That focused the nation’s attention on securing markets for its oil exports

through diplomatic efforts to deepen political and trade ties with Asian oil consuming states, and investment

in Asian petroleum refining and storage projects. The initiatives were undertaken amid signs that oil demand

in the developed world was threatened by economic stagnation, while new international agreements to

curb carbon emissions seemed likely to limit growth in global oil demand.

Facing an array of new challenges, the UAE has, therefore, adapted its oil policies to strike a balance between

its national and international responsibilities. At home, it must focus on developing its hydrocarbon resources

prudently, with the long-term aim of optimising revenue to fund economic diversification. At the same

89 > oil and gas

0 200 400 600 800 1000 1200 1400 1600 1800

Russia

Iran

Qatar

Saudi Arabia

United States

UAE

Top World Gas Reserves by Country (trillion cubic feet)

Top World Oil Reserves by Country (billion barrels)

0 50 100 150 200 250 300

Saudi Arabia

Canada*

Iran

Iraq

Kuwait

Venezuela

UAE

Source: Oil and Gas Journal January 1, 2009. * The Canadian figure includes oil sands.

Source: Oil and Gas Journal January 1, 2009.

90 > UAE 2010

time, as a member of OPEC, the UAE has a responsibility to the world at large to contribute to secure and

reliable oil supplies that meet global demand. Additionally, the nation recognises that it must play a part in

mitigating climate change by taking action to curb carbon emissions.

In the short-term, the UAE also faces a domestic gas crisis that impacts on the reliability of its electricity

supply. This has been exacerbated by compliance with OPEC oil cuts, as much gas is produced from the

nation’s oil fields. Lower crude output means lower produced volumes of associated gas. Compounding

the problem, Abu Dhabi, which was the first Gulf state to produce liquefied natural gas (LNG), has long-term

contractual commitments to export gas.

In the longer term, the UAE is pursuing plans to diversify its domestic energy supply to include nuclear and

solar power, which should lessen the pressure on its gas supplies. Further gas development, however, will

be essential if population growth and industrial expansion continue as forecast.

UAE Response to Changing SituationThe nation’s response to the rapidly changing energy milieu and its increasingly complex interface with

environmental issues has been measured but multifaceted. First, the UAE is pressing ahead with plans

to expand oil and gas production capacity, but has extended the time frame for oil development while

giving higher priority to gas projects. Second, government and industry have joined forces in initiatives

to develop new oil markets. Third, several emirates have launched programmes to bolster energy

efficiency and encourage energy conservation, reflecting the growing public awareness of the need to

reduce carbon emissions. Some of these directly involve the oil and gas sector. Fourth, the nation is

moving ahead with low carbon and clean energy developments, with close cooperation from oil and

gas producers. Fifth, it is fostering international energy partnerships and participating in more overseas

energy projects.

Developing Gas ReservesThe UAE’s proven oil reserves stood at 97.8 billion barrels at the end of 2008, and its proven gas reserves at

227.1 trillion cubic feet. That is enough oil to last for more than a century and sufficient gas for more than

130 year of supply at recent production rates. Among other things, that means the Emirates’ gas shortage

is not due to a lack of gas reserves, but to insufficient development, although many of the gas reserves are

of a type that is costly and difficult to produce.

92 > UAE 2010

Source: EIA.

UAE Oil Production and Consumption, 1999-2008 (in thousand of barrels per day)

3,500

3,000

2,500

2,000

1,500

1,000

500

0

1999 2001 2003 2005 2007

Production

Consumption

Net Exports

Source: EIA.

UAE Gas Production and Consumption, 1999-2008 (billion cubic feet)

1999 2001 2003 2005 2007

2,500

2,000

1,500

1,000

500

0

Production

Consumption

93 > oil and gas

A landmark event in 2009 was, therefore, the launch of a joint venture between the Abu Dhabi National Oil

Company (ADNOC) and the US oil company ConocoPhillips to develop the Shah gas field in the south-west

of Abu Dhabi at an estimated cost of US$10 billion (Dh37 bn). The project will not only provide about 500

million scfd of gas, but will also advance the emirate’s capability to exploit challenging gas deposits.

The Shah reservoir contains so-called ultra-sour gas, consisting of about 30 per cent hydrogen sulphide.

The deadly gas could endanger humans and livestock if allowed to leak into the atmosphere and could

damage the environment. Gas fields with similar hydrogen sulphide concentrations have been developed

elsewhere in the world, but not often. ConocoPhillips, however, is a world leader in the safe exploitation of

such reservoirs and will help ADNOC develop similar expertise.

As a spin-off from the Shah project, Abu Dhabi will become the leading regional exporter of sulphur, which

is used to make fertilisers, rubber and sulphuric acid. The emirate is considering whether to develop the

world’s longest liquid sulphur pipeline or a railway to transport sulphur from the Shah field.

Abu DhabiAbu Dhabi is pivotal in boosting the UAE’s overall oil and gas production capacity, as it contains about 94

per cent of the nation’s oil reserves and more than 90 per cent of its gas reserves. Major projects require

planning consent and budgetary approval from the emirate’s Supreme Petroleum Council (SPC). The body is

chaired by H.H. Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE, indicating the central importance

of the emirate’s oil and gas sector to the entire UAE economy. The SPC directs energy policy for Abu Dhabi

and functions as a board of directors for ADNOC, which is charged with proposing oil and gas projects to

the Council and implementing its directives.

ADNOC’s operating units, which are structured as joint ventures with foreign oil companies, are proceeding

with a full slate of major oil and gas developments in addition to the Shah gas project, discussed above.

They include four more projects to expand gas production and six aimed at oil development.

The first of these is a Dh40 billion (US$10.9 bn) effort to integrate gas production from two of Abu Dhabi’s

main offshore and onshore oil fields, unlocking an additional 1 billion scfd of gas supply. Abu Dhabi Gas

Industries (GASCO), one of the ADNOC subsidiaries responsible for handling the emirate’s gas, awarded the

four main engineering, procurement and construction contracts for the project in November of 2009.

94 > UAE 2010

Two more projects are planned to exploit sour gas fields, one onshore and one offshore. The remaining

gas project involves a new partnership between ADNOC and the Anglo-Dutch group Royal Dutch Shell to

search for gas deposits deep below the sea floor.

In oil development, the Abu Dhabi Company for Onshore Oil Operations (ADCO) awarded US$3.5 billion

(Dh12.9 bn) of contracts in 2009 for an integrated project to increase crude output from Abu Dhabi’s Sahil,

Asab and Shah oil fields by a combined 60,000 bpd to 455,000 bpd by 2016. It also awarded an US$805

million (Dh3 bn) contract to raise production from the Bab oil field, which was the first onshore oil deposit

developed in the emirate. In total, ADCO plans to increase oil production capacity by 400,000 bpd to 1.8

million bpd by 2017.

Offshore, the Abu Dhabi Marine Operations Company (ADMA-OPCO) is moving ahead with a ten-year plan

to increase output from two major Gulf oil fields, Umm Shaif and Lower Zakum, to 1 million bpd by 2019

from about 600,000 bpd in 2009. The unit also plans to develop three smaller fields that are expected to

yield another 76,000 bpd of crude oil. This is the first step in a plan to tap several small fields that were

passed over when Abu Dhabi’s main oil fields were developed.

The Zakum Development Company (ZADCO), another ADNOC offshore oil subsidiary, is proceeding with

a project to increase output from the Upper Zakum field by about 50 per cent to 750,000 bpd following

the 2009 completion of a reservoir study. In November of that year, it awarded a contract for dredging

work required to build four artificial islands to support drilling rigs for the project. ADNOC’s partner in the

development is the US oil major ExxonMobil.

Finally, ADNOC has awarded a new oil concession to the US oil company Occidental Petroleum to

develop two small fields close to the UAE capital. Starting in 2010, Occidental plans to invest US$500

million to produce 20,000 bpd from the fields. The crude will be sent to Abu Dhabi’s Umm an-Nar

refinery, the smaller of the emirate’s two petroleum refineries, to meet growing domestic needs for

petrol and other oil products.

ADNOC’s oil refining company, Takreer, also made steady progress in 2009 with long-standing plans to expand

Abu Dhabi’s petroleum processing capacity to 885,000 bpd from 485,000 bpd by building a new refinery

and integrating operations at its existing facilities.

95 > oil and gas

In November 2009, it awarded the first contracts for the US$10 billion (Dh37 bn) Ruwais refinery project,

which will serve as the foundation for the emirate’s diversification into petrochemicals. The two contracts to

build key equipment for the 417,000 bpd refinery, which is expected to start production in 2013, were worth

a total of US$5.2 billion (Dh19.1 bn). The decision to proceed with the project during a sustained downturn

in refining margins is part of a strategic move to capture a greater share of the global market for refined oil

products when the economy recovers.

Related to this venture, ADNOC’s fertiliser arm, Fertil, has announced plans to spend US$1.2 billion to build

a new plant at Ruwais, located about 200 kilometres west of the UAE capital on Abu Dhabi’s coast. In July

2009, the Vienna-based plastics maker Borouge, jointly owned by ADNOC and the Austrian oil company

OMV, awarded a US$1 billion contract under a programme to expand facilities at Ruwais.

DubaiDubai’s oil production, which once accounted for about half the emirate’s GDP, has fallen dramatically

from its 1991 peak of 410,000 bpd. By 2007 it had dropped to 80,000 bpd. As a result, the second largest

UAE emirate has swung from being a net oil exporter to importing most of its petroleum requirements.

While it continues to pump gas from offshore fields, Dubai also consumes more fuel than it produces, and

is increasingly dependent on imports to make up the difference. The emirate already purchases several

hundred million cubic feet per day of gas from Dolphin Energy, an Abu Dhabi company that imports gas

by pipeline from Qatar. In 2011, after completing the construction of a receiving terminal, Dubai will start

importing 650,000 tonnes per year of LNG under a contract with Qatar Petroleum and Shell.

Dubai remains deeply involved in the petroleum sector, however, as a hub for oil trading and energy

services. The port of Jebel Ali, located about 35 kilometres south-west of the city of Dubai, handles a large

part of the UAE’s trade in refined petroleum products and can accommodate tankers of up to 80,000

tonnes capacity. 

In 2008, the Dubai Multi Commodities Centre (DMCC) signed a framework agreement with investors for a

US$200 million project to build an oil storage terminal at Jebel Ali, with the aim of enhancing Dubai’s role as

a regional oil products trading hub and of supporting the emirate’s burgeoning civil aviation sector.

96 > UAE 2010

A condensates refinery at Jebel Ali, processing liquids from gas production, is being expanded to 120,000

bpd of capacity from 48,000 bpd. The refinery is one of two operated by the Dubai Government-owned

Emirates National Oil Company (ENOC). Both process feedstock imported from Qatar, Abu Dhabi and Iran.

The Dubai Mercantile Exchange (DME), launched in 2006, was the first commodities exchange to offer a

futures contract for a benchmark Middle Eastern crude. As of November 2009, trading in the exchange’s

DME Oman Crude Oil Futures Contract had increased by 58 per cent for the year, strengthening its prospects

for becoming a leading benchmark in global oil trade. Trading volumes benefited from the contract’s listing

in February of that year on the CME commodities exchange in the US. Both the DME and the DMCC also

offer futures trading in fuel oil.

A number of international oil companies maintain regional offices in Dubai, as do major companies

providing services to the energy sector. In 2007, the US oil field services company Halliburton established its

regional headquarters in Dubai. The following year, Mubadala Development, the Abu Dhabi government-

owned industrial conglomerate, and the British-UAE energy services firm Petrofac set up a joint venture

headquartered in Dubai.

Recognising the emirate’s challenges as it seeks to meet rising energy demand with diminished resources,

H.H. Sheikh Mohammed bin Rashid Al Maktoum, the Vice President of the UAE and Ruler of Dubai, in June

of 2009 created two new bodies to oversee long-term energy policy: an Energy Higher Council to address

demand issues and a Department of Petroleum Affairs to look at supply.

The Northern EmiratesFour of the UAE’s other five emirates also have minor amounts of oil and gas production. Crescent Petroleum,

a private-sector Sharjah company, produces oil from the Mubarak field in the Gulf, near Abu Musa Island, but

the field has been in decline for some time. Crescent and Dana Gas, a Sharjah affiliate, are also developing an

offshore gas field located in territorial waters shared by Sharjah and Ajman. Production is expected to start

in 2010. Dana and Emarat, a Dubai marketer of petroleum products, have jointly developed a common-user

gas pipeline to serve Sharjah customers.

Gas production from the Atlantis field offshore Umm al-Qaiwain began in 2008. A unit of China’s Sinochem

is developing the deposit and sending as much as 92 million scfd of liquids-rich gas through an under-sea

97 > oil and gas

pipeline to a Ra’s al-Khaimah processing plant operated by the Government-owned Ra’s al- Khaimah Gas

Commission, or RAK Gas.

RAK Petroleum, a private-sector Ra’s al-Khaimah company, holds interests in oil and gas concessions in Sharjah,

the Sultanate of Oman and its home emirate. In 2009 the company and its partners produced about 10 million

scfd of gas and associated liquids from the Bukha field, located in Omani territorial waters off the Musandam

peninsula. The development of the nearby West Bukha field, which produces about 8000 bpd of oil and 20

million scfd of associated gas, was also completed that year by a group including RAK Petroleum.

Fujairah does not produce oil or gas, although an onshore exploration programme is currently under way.

However, the world’s second largest bunkering port is located on its coast. The port of Fujairah, on the

Arabian Sea, handles about 1 million tonnes per month of marine transportation fuel and other oil products.

The arrival in 2008 of gas imports through the Dolphin Energy pipeline from Qatar has facilitated power

and water development in the emirate and stimulated local industry.

The International Petroleum Investment Company (IPIC), owned by the Abu Dhabi Government, is building

a strategic crude oil pipeline to deliver up to 150,000 bpd of oil from Abu Dhabi’s Habshan onshore fields

to a new export terminal in Fujairah. The project aims to supply an export route for Abu Dhabi crude that

bypasses the Gulf’s maritime choke point at the Strait of Hormuz. It is slated for completion in 2010, with

the first tanker shipment from Fujairah expected in early 2011. IPIC is also in the early stages of developing

an oil refinery and storage facilities at the Fujairah port.

International DevelopmentsAs the UAE’s oil and gas sector has developed sophistication, it has spawned a number of public and private

sector companies that pursue energy development abroad. In Abu Dhabi, three Government-controlled

entities, Mubadala Development, the Abu Dhabi National Energy Company, or Taqa, and IPIC, are the main

vehicles for such enterprise. In 2009, Mubadala’s oil and gas output stood at roughly 350,000 barrels of

oil equivalent per day (boepd), while Taqa produced about 112,000 boepd. IPIC’s investments have been

mainly in petroleum refining and petrochemicals.

Mubadala produces oil in Oman and oil and gas in several south-east Asian countries. As the controlling

shareholder of Dolphin Energy, a joint venture with Occidental Petroleum and the French energy group

98 > UAE 2010

Total, Mubadala also produces gas and condensates in Qatar. Since 2008, Dolphin has been sending up to

2 billion cubic feet per day of gas through an undersea pipeline to Taweelah in Abu Dhabi for distribution

through an overland pipeline system to customers in the UAE and Oman. Mubadala is in another joint

venture with ConocoPhillips to explore for oil and gas in the Caspian Sea off the coast of Kazakhstan. In

November 2009, Mubadala and Occidental Petroleum finalised an agreement with the National Oil and Gas

Authority of Bahrain to raise output from the Kingdom of Bahrain’s only onshore oil field.

Taqa produces most of its oil from the UK North Sea, while its gas production is concentrated in Western

Canada and the Dutch North Sea. It also owns interests in pipelines, production platforms and gas storage

facilities in those areas, and is leading a project in the Netherlands to develop a major gas storage and

marketing hub for western Europe. In addition, Taqa has a substantial international and domestic portfolio

of power generation assets.

IPIC has acquired, in a wide portfolio, oil and petrochemicals interests in North America, Europe and Asia. It

is a major shareholder and strategic partner of Austria’s OMV, and holds an indirect interest in a large LNG

development in Papua New Guinea.

The Dubai Government’s ENOC also invests overseas, mainly through its 52 per cent interest in Dragon

Oil, which produces oil and gas in Turkmenistan. Al Thani Corporation, a private-sector Dubai company, is

exploring for oil and gas in several African countries including Sudan, Egypt and Libya.

The Sharjah affiliates Crescent Petroleum and Dana Gas have a gas joint venture in Iraqi Kurdistan. Dana

also produces oil and gas in Egypt. RAK Petroleum is involved in oil and gas exploration and production

in Oman, and has acquired a minor interest in Heritage Oil, a Canadian company with a big oil discovery

in Kurdistan.

Future DevelopmentEnvironmental mitigation, especially as international concern mounts over global warming, presents a

substantial challenge to the global oil and gas industry, which is under pressure to find ways to cut its carbon

emissions. The UAE’s oil and gas sector has accepted the challenge, and is already making progress with a

number of initiatives.

99 > oil and gas

As an example, ADNOC is well on the way to eliminating gas flaring. By reducing the wasteful burning of

gas at production facilities and oil refineries through better management, the company is not only cutting

carbon dioxide emissions, but is also conserving a valuable energy resource.

ADNOC is also a partner in an ambitious scheme to develop a carbon capture and storage network for the

UAE. The plan is to capture carbon dioxide emissions from major Abu Dhabi industrial installations and

pipe the gas to oil fields for use in enhanced oil recovery projects. Eventually, the carbon dioxide would be

permanently stored underground in the depleted reservoirs.

Within the next few years, Abu Dhabi will also face decisions related to the expiry in 2014 and 2018 of long-

term concessions covering production from most of its biggest oil fields. While details of the negotiations

have not been made public, senior government and ADNOC officials have indicated that they value Abu

Dhabi’s partnerships with international energy firms and wish to continue such alliances.

U N I T E D A R A B E M I R A T E S 2 0 1 0

infrastructureThere is renewed focus on urban planning in the UAE as the recent economic boom has brought with it a rapidly rising population and a wide range of real estate, commercial and industrial development.

Urban planners have met the ensuing challenges, such as traffic congestion, housing shortages

and improvement of infrastructure, with visionary long-term plans that focus on boosting the

quality of life for all whilst pursuing the goal of economic diversification.

page 6 | uae 2010 U N I T E D A R A B E M I R A T E S 2 0 1 0

102 > UAE 2010

Plan Abu Dhabi 2030In 2009, Abu Dhabi made key strides towards the implementation of its Plan Abu Dhabi 2030, a roadmap

that seeks to cope with an estimated tripling of the population of the capital in the next two decades as

new industries, cultural attractions, hotels, schools and hospitals are built. The plan seeks to find a balance

between managing growth, fostering tourism and trade, while preserving the city’s cultural heritage and

natural environment.

The city planning envisions two new focal points for the capital: one is on Sowwah and Reem, two small

islands lying to the east off the main Abu Dhabi Island. These will be developed into downtown financial

and business districts interconnected by more than a dozen bridges. Major works are being completed

for the first phase on Sowwah, including Sowwah Square, the future home of the Abu Dhabi Securities

Exchange. Sowwah will provide the first example in the capital of a two-level podium system, requiring

automobiles to use underground roads and allowing pedestrians more freedom at ground level.

On the mainland adjacent to Abu Dhabi Island, the Capital District will become the second focal point and

the new seat of Government. Public agencies and foreign embassies will be located close to housing for

370,000 residents under the 2030 Plan, whilst a circular central area will hold the highest building heights

and population densities. Work on a number of key projects has already commenced. Piling has begun on

a 65,000-seat stadium that will be used for sporting events, concerts and exhibitions. Site preparations have

also begun for Zayed University’s new campus. These efforts are being overseen by the Urban Planning

Council (UPC), which is working to ensure the area has the necessary infrastructure in place, such as utilities

and power.

There are big changes afoot also on Saadiyat Island, the proposed site for numerous hotels, leisure facilities,

golf clubs and, residential centres as well as a Cultural District that will include museums like the Jean

Novel-designed Louvre Abu Dhabi, Foster + Partner’s Sheikh Zayed National Museum, and the Frank Gehry-

envisioned Guggenheim. An area of pristine mangroves is being protected amidst the development, along

with an important archaeological site on much of the island.

On Yas Island, a sustained three-year construction effort resulted in a successful inaugural Formula One

Grand Prix on the Yas Marina Circuit in November 2009. Just a month before the Grand Prix, the two islands

were linked by a new 27-kilometre, ten-lane highway that originates at the E10 motorway, in the Shahama

104 > UAE 2010

district, and crosses Yas, Jubayl and Saadiyat, before transversing the newly built 1.4-kilometre-long Sheikh

Khalifa Bridge to reach Abu Dhabi Island at Mina Zayed Port. The new highway also reduces travel time

between Abu Dhabi and Dubai.

Transport Master PlanThe dominance of the car as a means of transport will be challenged as Abu Dhabi builds one of the most

comprehensive public transit systems in the world, valued at more than Dh300 billion, over the next 20

years. The Abu Dhabi Department of Transport recently launched its Surface Transport Master Plan, which

lays out guidelines to achieve the transport goals of the 2030 Plan. The Department wants to boost the

use of public transport participation to 35 to 40 per cent of all daily trips by 2030. An integrated system of

buses, trams, metro and regional rail will connect with personal rapid transit, a new system that involves

battery-powered podcars.

In total, there are nearly 20 major transportation projects earmarked for completion before 2015, at a cost

of Dh50 billion. Other plans include a new mixed-use motorway to the Dubai border; a 20-kilometre Mid-

Island Parkway, which will connect Reem Island with Abu Dhabi Island and the planned Capital District;

several more bridges and tunnels; and the department intends to construct a 140-kilometre motorway

from Al Ain to the new Khalifa Port and industrial zone at Taweelah, north-east of Abu Dhabi City.

In 2010, the Department of Transport plans to break ground on a Dh10 billion project to widen the expressway

linking the capital with the Saudi border, the Mafraq-Ghuweifat Highway. The deal is being structured as an

innovative public-private partnership financing arrangement where contractors shoulder part of the risk by

paying the upfront costs, and recouping their expenses over the 25-year lifespan of the highway.

Transport planners are also busily evaluating engineering bids for a tram and metro network, as deadlines

near: the first section of the 340-kilometre tram network is scheduled to open in 2014, while phase one

of the 130-kilometre metro network is scheduled for a 2016 launch. Both projects could see construction

begin around 2011, and, with many urban streets being affected, the UPC plans to take the opportunity to

revamp them using new street design standards.

A new street design manual was completed in 2009 and with it Abu Dhabi joins an elite club of cities that

issued their own design manuals recently, including New York and London. The report is primarily geared to

assist property developers to plan residential and commercial projects. A new focus on pedestrian well-being

105 > infrastructure

could see the provision of enlarged corner pavements. Planners are also considering eliminating dedicated

right-turn lanes, which have given drivers the ability to by-pass traffic lights without stopping for pedestrians.

Abu Dhabi’s ‘super-blocks’, consisting of lengthy stretches between traffic signals and multi-lane roads, will

also see significant changes. These roads will be broken up by adding extra signals and zebra crossings.

In addition, these many straight and wide thoroughfares will be narrowed, which should encourage drivers

to slow down and drive more safely, while major transport arteries will be provided with additional safety

measures. Such moves represent significant changes to Abu Dhabi’s road system for the first times in decades.

Simultaneously, the Department of Transport has launched a programme to improve congestion downtown

with a parking management scheme that includes metered parking spaces in central areas. This will be

gradually expanded to cover all major commercial and high-density residential districts.

Freight NetworkOther changes are focusing on the areas outside of Abu Dhabi Island. The capital’s existing port, Mina Zayed,

is to be closed down and redeveloped into prime waterfront property, while a much larger port and industrial

zone, Khalifa Port and Industrial Zone, is being built on a reclaimed island 5 kilometres offshore near Taweelah.

In 2009 the Abu Dhabi Ports Company awarded Dh10 billion in contracts in anticipation of a 2012 opening.

To support Abu Dhabi’s growing industrial base as well as the need for better transport links between

all seven emirates, a 1200-kilometre freight rail network will also be built by the newly established Union

Railway Company and span the entire length of the emirates. The rail line will eventually link up with the

planned GCC railway network and carry both freight and passengers – with speeds of 120 kph for freight

and up to 200 kph for passenger services.

Benefits of the rail line will include reducing the need for heavy vehicles on the roads and adding vital

logistics links to new aluminium, plastics and chemical plants that are being developed in the Al Gharbia

(Western) Region, Al Ain, Taweelah and the Musaffah industrial area.

A contractor will be selected in the first quarter of 2010 for detailed engineering work, according to the

project timeline. The first construction contracts are expected to be awarded by the end of 2010, and the

entire construction process will take between five to eight years. The trans-Emirates network is expected to

cost roughly Dh30 billion.

106 > UAE 2010

Abu Dhabi Airport ExpansionTo enhance travel and trade links, Abu Dhabi Airports Company is expanding the capacity of Abu Dhabi

International Airport. In 2008 the airport was named the fastest growing international airport in the world

by Airports Council International, and in 2009 it welcomed eight new carriers to the capital.

Coupled with the dramatic growth of its flag carrier, Etihad Airways, airport planners have been hard at

work to continue expanding infrastructure. In March 2009 Etihad completed its transfer of flights to the new

Terminal 3, built at a cost of Dh1.1 billion, which has to increased the capacity at the airport by another five

million passengers a year.

In 2015, the Dh25 billion Midfield Terminal will open to provide another 20 million in passenger capacity

in its first phase, and more than 40 million passengers a year when fully completed. The Midfield Terminal,

which is designed in the shape of the letter ‘X’ by the Kohn Pedersen Fox Associates of the UK, will be built

between the two runways.

Al Ain and Al GharbiaFurther afield, Al Ain City and Al Gharbia are undergoing their own 2030 Plans. In Al Gharbia, which comprises

83 per cent of the emirate’s territory but just 8 per cent of the population, the focus is to bring in jobs

107 > infrastructure

outside the oil and gas industry, currently the major local employer, and to promote tourism. The blueprint

for the region pays particular attention to the improvement of infrastructure as the population grows but

also emphasises the need to maintain the region’s character.

The Al Ain 2030 Plan was announced in April 2009 and laid out a vision for the city, including a tram network,

additional housing for UAE nationals and environmental protection. Work on a 2030 Plan for the rural areas

of the Eastern Region was under way at the end of 2009.

Dubai Strategic PlanThe focus on master-planning is also strong in Dubai, where the guiding policy document is the Dubai

Strategic Plan – 2015, unveiled in 2007. The Plan touches on urban planning; energy, electricity and water;

roads and transportation and the environment. Sustainable development and a balanced view towards

new infrastructure are at the core of the policy. On transportation, the Dubai Strategic Plan emphasises

the need for improving mobility and safety, including an increased use of public transport, lower use of

private cars, the building of more roads, bridges and links. It also seeks to prioritise the need to improve the

management of accidents and emergencies, and using demand management to reduce peak congestion,

such as road tolls. New road safety standards, safety audits and driver awareness campaigns are also planned.

108 > UAE 2010

Dubai’s Transport GoalsFuelled by a desire to improve the standard of living for all residents, the Dubai Roads and Transport Authority

(RTA) is planning to build more than 900 kilometres of cycling tracks in the city over the next ten years. Work

on the first tracks, including 70 kilometres in Bur Dubai and 57 kilometres in Deira, has already begun.

The most important step in the improvement of Dubai’s transport, however, took place on 9 September

2009, with the inauguration of the city’s first metro line, the 52-kilometre long Red Line. In the first two days

of operation, it carried 110,000 people, surpassing expectations. In the first two months, nearly 3.5 million

passengers rode the metro. The driverless system began operating with ten of 29 stations. The remaining

stations have been built, and all are all expected to open by the end of February 2010. A second network,

the Green Line, is under construction and expected to open in 2010. It will feature 18 stations, including

12 elevated and six underground stations and run a length of 22.5 kilometres. Plans for two further lines

are being prepared. To help integrate the metro with other modes of transit, the RTA is also building up its

bus fleet. In June 2009, it purchased 518 Citea buses from VDL, based in the Netherlands, with further deals

expected to follow.

The metro continues a focus on mass transit begun when Dubai launched its 5.5-kilometre Palm Jumeirah

Monorail in April 2009, the first of its kind in the Middle East. The system connects the Palm Jumeirah island,

including the Atlantis Hotel, to the mainland. Future plans call for extending the monorail to the Dubai

Metro Red Line.

Soon, the residents of Jumeirah and Dubai Marina will have yet another option for mass transit: a 14.5-kilometre

tram service. The Al Sufouh Tram, which will also become the first of its kind in the region, will run along

Al Sufouh Road from Dubai Marina to the Burj al-Arab hotel and the Mall of the Emirates. The project cost

is Dh4 billion. The design has been custom-tailored to adapt to the Gulf climate and will become the first

tramline with air-conditioned stations. The 11-kilometre first phase, which includes 2.5 kilometres of rail

running above ground across a viaduct and 11 tramcars, is scheduled to open in 2011. Project engineers

began work in mid-2009 on the viaduct and excavation for the platforms and stations, and the first tracks

of the line were laid in December 2009.

Dubai’s Airports and PortsThe backbone of the Dubai economy has always been its logistics and transport infrastructure, and Dubai

has continued to invest in this infrastructure to fulfill its long-term plans. With travel and tourism trade

109 > infrastructure

accounting for an estimated 25 per cent of the emirate’s GDP, Dubai International Airport posted strong

results in 2009 despite a global slowdown in air travel. The airport broke the 40-million passenger mark, a

9.2 per cent increase on 2008, making Dubai the sixth largest international airport by throughput and one

of the few among the top 20 largest airports to register positive growth. In 2010, the airport is projecting a

13.4 per cent rise in traffic volumes.

A number of infrastructure projects will see the airport continue to expand its capacity to stay one step

ahead of growth. In 2008, Dubai Airports opened the Dh16.5 billion Terminal 3, dedicated to Emirates Airline,

which is the single largest building in the world by floor space, and added another 1.5 square kilometres to

the area of the airport’s structures. A third concourse designed to handle Emirate’s A380 Superjumbo fleet is

being built at a cost of Dh4 billion. The facility is scheduled to open in late 2011 and will push capacity to 75

million travellers a year. Planners have also indicated that airport processes and procedures will be improved

to expand the capacity of Dubai International up to 90 million passengers a year by the end of the next

decade. Some options include an upgrade of its three terminals, and the introduction of a fourth terminal.

The focus on boosting capacity at Dubai International is taking place in tandem with a gradual transfer of

airlines over the next decade to the Dh30.11 billion Al Maktoum International Airport in Jebel Ali. Although

limited services are set to open in mid-2010 for phase one, with a capacity of 5 million passengers a year,

completion of the new airport envisages a capacity of up to 160 million travellers a year and five runways,

which would make it the largest airport in the world.

Jebel Ali Port, the biggest in the Middle East, and the busiest container terminal between Asia and Europe,

has also seen a number of new improvements after becoming a victim of its own success, with heavy

queues and long wait times for vessels recorded in late 2008. The operator, DP World, responded by bringing

in new giant tandem lift gantry cranes, the largest in the world and offering twice the handling capacity of

traditional cranes. Rail-mounted gantry cranes were also introduced as part of the second phase of Jebel

Ali’s Container Terminal 2, which now boasts 29 tandem lift cranes and 60 rail-mounted gantry cranes. The

port also expanded its workforce and trained new staff.

With the new equipment, capacity at Jebel Ali now stands at 14 million TEUs (twenty foot containers or

equivalent units) per year. As it foresees continued growth, DP World has outlined expansive plans to expand

its capacity to up to 80 million TEUs by 2030, by extending the port out to a reclaimed island.

110 > UAE 2010

Northern EmiratesIn the northern emirates, municipalities are making great strides in improving the quality of urban

infrastructure. In particular Sharjah’s urban centre has suffered from congestion because of a rising local

population. In 2003 the emirate outlined a Vision 2020 Plan and implementation of this is now well under

way. Among key aspects are an improvement of urban and community developments, as well as boosting

tourism, drawing more students to its academic institutions and promoting trade and investment.

In 2008 the emirate announced plans for investments in municipal services that constitute the most

significant spending since the municipality was established some 80 years ago. Some of the improvements

are focused on reducing traffic congestion, such as the introduction of a new intra-city public transport

system, and adding parking spaces for residents and office workers. Looking ahead, the emirate is planning

to introduce a paid parking scheme, and is also building multi-storey parking facilities in some residential areas.

As a major logistics player, Sharjah continues to invest in its ports in the Gulf and on the east coast. Khor

Fakkan, bordering the Indian Ocean, increased its capacity by 33 per cent to 4 million TEUs in 2009, while it

also expanded the size of its quays and increased the number of gantry cranes by a third.

In Ra’s al-Khaimah, the emirate is embarking on a plan to attract new cargo and passenger airlines to its

airport and to introduce new feeder services to regional cities. The plans involve significant investments

over the next 20 years, including new airport aprons and taxiway system, as well as two new terminals that

will be built in phases. Existing terminals will also be improved. The emirate also continues to improve Mina

Saqr, the first deepwater port in the Gulf. The port is being expanded to handle 3 million TEUs by 2012 to

boost its trans-shipment potential, as well as to improve the capacity to handle bulk cement and aggregate.

The port of Fujairah, the second largest oil-bunkering facility in the world, is also expanding, and in September

2009 it awarded contracts to add additional berthing capacity for oil tankers, at the Oil Terminal 2.

Spurred by the success of airports in neighbouring emirates, Ajman is preparing to enter the fray. Plans for

a Dh12 billion international airport were first announced in 2007 and the project is currently scheduled for

completion in the next few years. It will be built on an area of 5 square kilometres and, when finished, will

serve at least 1 million passengers a year and handle a minimum of 400,000 tonnes of cargo a year.

Right: The UAE has over 20 ports, ranging from state-of-the-art oil terminals and world-class container- handling facilities to dhow wharfs.

U N I T E D A R A B E M I R A T E S 2 0 1 0

electricity and water

During 2009 the cumulative impact of record-breaking economic growth on power generation and water production in the UAE was a major consideration in terms of supply planning.

Looking to the future, Government is focused on the need for research into and development of alternative

sources of energy to fuel utilities (natural gas being the fuel of choice to date) as well as on securing

funding for new projects.

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114 > UAE 2010

At the same time, however, there are current challenges, in terms of a lack of supply, particularly, via the Federal

Electricity and Water Authority (FEWA), in the northern emirates, although both Abu Dhabi and Dubai also

face constraints. Substantial progress was made during 2009 in tackling these problems. Thus, for example,

Dubai Electricity and Water Authority (DEWA) and Abu Dhabi Water and Electricity Authority (ADWEA)

secured financing for new projects, whilst Abu Dhabi both extended financial aid for new infrastructure,

and stepped up exports of electricity from its own power stations to Sharjah and the northern emirates in

order to address the shortfall in supply. Recognising the importance of sustainable development, attention

was also paid to promoting public awareness about the need to slow electricity and water consumption

growth. Meanwhile, new sources of energy were planned in the form of solar plants and nuclear reactors.

The year culminated with one of the most important development-related events in the country’s history:

the signing of a Dh75 billion (US$20 bn) contract with a consortium of Korean firms to build four nuclear

power stations by 2020. The move means that the UAE will be the first Arab nation to tap atomic power on

a commercial scale (see chapter on the Nuclear Programme).

Capacity IncreasesThe UAE continued to build up power capacity in 2009 to keep pace with consumption that grew strongly

despite the economic downturn. Peak consumption of electricity jumped 11.3 per cent in Abu Dhabi

and 6.3 per cent in Dubai, according to statistics issued in November 2009 by the Abu Dhabi Water and

Electricity Company.

Significant growth was also evident in the water sector, where the Government is grappling with lowering

one of the highest per capita consumption rates in the world. The country has limited resources of fresh

water and has become increasingly reliant on production by desalination through co-generation with

power stations. According to the Ministry of Environment and Water, for much of the year, depending on

temperatures, about 98 per cent of the water being consumed is produced by desalination.

ADWEA continued work on the 2000 megawatt (MW) Fujairah 2 power station, at Qidfa, on the UAE’s east

coast. To be fuelled by gas supplied via a pipeline from Taweelah, north-east of Abu Dhabi, and due to be

completed by the end of 2010, this will supply power both to Abu Dhabi and to the grid in the northern

emirates. The attached desalination plant will also supply 130 million gallons per day (mgd) of water to Al

Ain and Fujairah.

116 > UAE 2010

ADWEA also connected to its first major renewable energy source: a 10 MW array of solar panels at Masdar

City (see chapter on Renewable Energy) and closed a US$2.15 billion financing facility for the massive

Shuweihat 2 power and water station. This plant will generate over 1600 MW and 100 mgd of water, when

it opens in 2011.

ADWEA is also planning its ninth Independent Water and Power Project (IWPP) since the sector was opened

up to partial privatisation in 1998. The Regulation and Supervision Bureau, which oversees power and water

production for Abu Dhabi, estimates that the emirate will need at least three new plants over the next

seven years to keep up with demand.

In Dubai, DEWA increased its generating capacity during the year with introduction of a new 611 MW

capacity plant at Jebel Ali. However, it deferred bids for the first phase of a planned massive new power

117 > electricity and water

and water plant at Hasyan, since it was considered that the emirate had sufficient capacity to meet near-

term projected demand. Meanwhile, DEWA expects to complete the Jebel Ali M Station – with a water

production capacity of 140 mgd – during 2010.

Power cuts in Sharjah during the hot summer months prompted a decision by the Sharjah Electricity and

Water Authority (SEWA) to increase prices per unit, in the hope of reducing consumption, although consumers

still enjoy a substantial subsidy. During the year, ADWEA boosted exports of electricity to Sharjah by 70 per

cent, and in November 2009, H.H. Sheikh Khalifa bin Zayed, President of the UAE and Ruler of Abu Dhabi,

donated Dh1 billion to the emirate for infrastructure development, especially new power generating capacity.

A study by the Federal National Council indicated that about 1000 commercial buildings in Ra’s al-Khaimah,

Ajman, Umm al-Qaiwain and Fujairah completed but are awaiting connections to the electricity supply

118 > UAE 2010

network. Temporary solutions to these problems included a mix of small-scale generators and medium-

sized power plants. Ra’s al-Khaimah brought 129 MW capacity online in March and April, but will need a

number of other plants to fully supply new developments. One key question facing these emirates, and

Dubai and Abu Dhabi more broadly, is the choice of fuel for new plants.

New Energy SourcesThe Abu Dhabi government has committed tens of billions of dollars to develop new gas fields and to

transfer gas from offshore facilities (see chapter on Oil and Gas). This is a continuing process in which, over

the longer term, demand predictions continue to outpace supply estimates.

In 2008, Dubai signed agreements to begin importing liquified natural gas, while Sharjah-based Dana

Gas also has an agreement with Iran to import gas, although disagreements over pricing mean that the

agreement has yet to be implemented. The low prices paid by utilities, themselves a direct result of caps

on the prices that can be charged for electricity, continues to create difficulties in resolving this issue.

Alternatives to gas-fuelled power generation are also under consideration. Ajman and Ra’s al-Khaimah have

put forward plans to build coal-fired power stations with capacities of 1000 MW and 600 MW, while DEWA

announced that it would seek bids on two separate coal projects. Meanwhile, in Abu Dhabi, ADWEA has

not ruled out using diesel or crude oil as a fuel for the emirate’s ninth IWPP.

Looking to the future, Abu Dhabi is expected to unveil a framework to support the higher generation costs

of renewables in its new comprehensive energy plan, as part of its goal to have renewables produce 7 per

cent of the emirate’s electricity by 2020. It is expected that nearly all of that renewable capacity, amounting

to about 1500 MW, will be solar. However, it is also generally agreed that the long-term answer is nuclear

power (see chapter on Nuclear Programme).

Reducing ConsumptionIn the face of high growth in consumption, local governments across the country began to place increased

emphasis on reducing consumers’ waste of electricity and water. Sharjah’s sharp increase in electricity prices

was the first in a number of price hikes expected across the UAE as governments investigated the possibility

of bringing utility rates closer to those of other countries. Such a step, of course, has wide economic and

social impacts.

119 > electricity and water

In August 2009, the Dubai government created a high-level planning body that will advise the government on

ways to control growth in demand for power and water. The Higher Energy Council, under the chairmanship

of Sheikh Ahmed bin Saeed Al Maktoum, includes representatives from DEWA, Dubai Aluminium, Emirates

National Oil Company, Dubai Petroleum, the Dubai Nuclear Energy Committee and the Dubai Supply Authority.

DEWA also sponsored a number of high-profile campaigns to convince its customers to reduce waste of

electricity and water. In Abu Dhabi, the Executive Affairs Authority commissioned a study to determine

the extent of resources that could be saved with better demand management. The study found that even

without an increase in prices, the emirate could save itself the cost of two power stations and a water

desalination plant if it steps up measures to promote efficiency in water and electricity use. Recommendations

by experts included mandates on the efficiency of appliances and household goods, better education

campaigns, and a strengthening of building codes to improve insulation and cooling systems.

In an attempt to further rein in the growing need for these massive plants, governments across the Emirates

teamed up with environmental groups to reduce water usage in homes and commercial buildings. Among

the initiatives taken was a high-profile campaign, led by the Environment Agency – Abu Dhabi (EAD) in

association with the Emirates Wildlife Society, to install water-saving devices in 100,000 public buildings and

homes. Each device installed on shower-heads and taps could reduce water flow by 30 to 35 per cent. EAD

aims eventually to cut per capita consumption from 550 litres per day to 350 litres per day.

One of the first steps to improving conservation is gaining a better understanding of where water is actually

consumed. After a lengthy campaign in Abu Dhabi, approximately 80 per cent of customers’ use of water is

metered, with officials expecting full coverage within one to two years.

U N I T E D A R A B E M I R A T E S 2 0 1 0

renewable

energy

As the UAE continues the drive to diversify its economy away from dependence on exports of depletable oil and gas and to move towards a more substainable local economy, increasing attention has been paid to the need to develop the renewable energy sector.

The year 2009 saw several important milestones being achieved. The UAE’s first renewable energy capacity

target was established, the first commercial-scale solar power plant was switched on and the first intake of

students was welcomed to a major new research institute on clean energy.

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122 > UAE 2010

The Masdar Initiative, led by the Abu Dhabi Future Energy Company (ADFEC), continued work on development

of its ‘Masdar City’, while at an international level, the UAE succeeded in winning the contest to be selected

as headquarters for the new International Renewable Energy Agency (IRENA).

There remain, of course, significant challenges yet to be resolved. It is not clear, for example, whether

generation of electricity through solar power is economically feasible in a heavily-subsidised market, while

there are also technical issues that currently impede the use of some solar technologies because of high

levels of dust and haze in parts of the Emirates.

Beyond these, of course, the biggest unknown for the renewable energy sector rests with the ability of the

world’s leaders to agree on a new climate change treaty in the coming year, the details of which will have

an important impact on the types of clean energy projects prioritised in the UAE.

PolicyThe Abu Dhabi government announced in January 2009 that it would seek to generate 7 per cent of

electricity from renewable energy sources by 2020. It is expected that the bulk of this target, which did not

count nuclear energy as ‘renewable’, will be met by solar power plants. The target will be supported by a

comprehensive energy policy that is due for release in 2010.

Among the key issues that the policy will address is how to balance the relatively higher costs of generating

electricity from renewable sources in a way that provides discounts for reducing carbon emissions and

encourages sustainable energy solutions. The ‘playing field’ can either be levelled by reducing consumer

subsidies for unsustainable electricity generation or by direct subsidies to the renewable energy companies.

One frequently cited model for Abu Dhabi, the ‘feed-in’ tariff, is common in Europe. Under this scheme,

utilities are obliged to pay above market-rates for a set quota of clean electricity from energy companies.

However, it is expected that electricity prices will remain at highly competitive levels in the UAE despite the

introduction of renewables and nuclear power.

IRENA and CopenhagenRecognition of the UAE’s renewable energy efforts received a significant boost in June 2009 when members

of the six-month-old UN agency IRENA selected Abu Dhabi to host its headquarters, the first time a UN

Right: H.H. Sheikh Abdullah bin Zayed Al Nahyan, UAE Foreign Minister, makes the case for locating the IRENA headquarters in the UAE.

124 > UAE 2010

agency has been headquartered outside Europe or America. The win was the culmination of a hard-fought

competition against Germany and Austria that saw Sheikh Abdullah bin Zayed, the Minister of Foreign

Affairs, and other top officials visit over 90 countries to garner support (see chapter on Foreign Policy).

The UAE’s bid centred on Masdar City, the carbon neutral, zero-waste complex at the edge of the capital

that will host IRENA’s headquarters. The UAE offered IRENA extensive financial support, including free rent at

Masdar City, and soft-loans totalling US$50 million a year to permit support of renewable energy projects in

the least developed countries to commence immediately. For its first seven years, the UAE pledged US$22

million annually in direct funding for IRENA, and US$15 million annually after this period.

IRENA established its temporary headquarters in Abu Dhabi in late summer 2009, and thus created an

independent voice lobbying countries to make renewables a key part of a future climate change treaty.

Carbon CaptureClimate change talks based on the political agreement reached at the global summit in Copenhagen in

December 2009 are destined to be one of the most important influences on Masdar and the development

of the renewable energy sector in general in 2010. For Masdar, a key question is whether negotiators will

125 > renewable energy

agree to extend UN-administered financial assistance to efforts to capture carbon emissions from power

plants and factories and bury them underground. The Clean Development Mechanism (CDM) currently

awards credits to other types of projects in developing countries that reduce emissions. Those credits are

then sold on the carbon market in Europe, potentially generating billions of dirhams worth of revenue.

Developing cost-effective carbon capture technology has become a priority for Masdar. One idea currently

being examined is the injection of carbon dioxide emissions into oil wells, to replace the gas currently

being injected to maintain reservoir pressure, which can then be used for other purposes. Carbon dioxide

injection may also increase the amount of oil that can be recovered. Funding through the CDM could play

an important role in the scheme. A pilot project in the onshore Rumaitha oilfield, operated by the Abu

Dhabi Company for Onshore Oil Operations (ADCO) part of the Abu Dhabi National Oil Company (ADNOC)

group, commenced in late 2009, as part of an ADNOC investigation of the effectiveness of the process.

Solar Comes OnstreamAlmost all of the significant renewable energy projects in the UAE have been led by Masdar, which is

investing in a number of renewable energy technologies to supply Masdar City and help meet Abu Dhabi’s

target to generate 7 per cent of electricity from renewables by 2020.

126 > UAE 2010

Masdar completed an intricate and extensive array of solar panels, known as photovoltaics, on a site adjacent

to Masdar City at the beginning of 2009. The panels, reliant equally on technologies from the US company First

Solar and China’s Suntech, were procured and installed by Enviromena, a fast-growing local solar contractor

and the array has the capacity to generate 10 MW of power, which is fed into ADWEA’s power grid.

The firm is expected to provide the bulk of power generating capacity to meet Abu Dhabi’s 7 per cent

target, which amounts to roughly 1500 MW of solar and other renewable sources. Masdar has been testing

a number of solar technologies to determine which will take the lead role.

At the beginning of 2009, a technology called concentrated solar power (CSP), or solar thermal, appeared to

be the favourite to generate up to 90 per cent of Abu Dhabi’s clean energy. CSP uses mirrors to concentrate

the heat of the sun’s rays and boil water, which then turns a conventional generating turbine. The technology

has been deployed at a large scale in Spain, and proponents pointed to its advantages for Abu Dhabi: it can

generate large amounts of uninterrupted power and maintain output for several hours after the sun sets.

Masdar disclosed plans for a 100 MW CSP plant called Shams 1 (Shams means ‘sun’ in Arabic) in Madinat

Zayed, in the Al Gharbia (Western) Region. Plans were also drawn up for a Shams 2 and a Shams 3. Computer

modelling showed, however, that dust and haze in the air would reduce the plants’ efficiency by up to

20 per cent and the plans are currently being reviewed. At the same time, costs for the main competitor

technology – photovoltaics – fell sharply, suggesting it could be deployed at a larger scale than originally

thought. Photovoltaics have an additional advantage in that their output is less susceptible to the diffusion

of sunlight caused by dust and haze. Award of a construction contract for Shams 1 was delayed, as Masdar

investigated moving the plant to another location in the emirate.

A third competitor technology entered the fray in the autumn, when Masdar announced plans to study the

feasibility of using concentrated photovoltaics (CPV) at Masdar City in cooperation with a Spanish research

institute. CPV, which uses lenses and motors to track the sun’s movements and focus its rays on photovoltaic

panels, is far more expensive than competitor technologies but is also much more efficient.

While the technology is still in its infancy, it is expected that as production of CPV systems is scaled up costs will

decrease and the technology could later become a viable competitor as a renewable energy source. However,

it remains likely that CSP and photovoltaics may be deployed in equal numbers to meet the 7 per cent target.

127 > renewable energy

Masdar also aims to become a major producer of photovoltaics through its wholly owned subsidiary, Masdar

PV, and has completed construction of a panel manufacturing plant in Ichtershausen, Germany that began

production of thin-film PV, which is cheaper but also less efficient than traditional silicon panels. The plant has

the capacity to produce 65 MW worth of panels every year. Masdar PV is hoping to undersell competitors by

producing the largest PV panel in the world, at 5.7 square metres. Building of a second PV plant at Taweelah,

in Abu Dhabi, is being considered.

Other TechnologiesSolar is clearly the country’s key renewable energy resource, but Masdar is also investing in other technologies,

including wind and geothermal. The company made headlines in May 2009 when it decided to invest €2.2

billion (Dh11.01 bn) with two international partners to build the London Array, the world’s largest offshore

wind farm. In April the British Government had announced it would lend financial support to offshore wind

farms across the country. The investment furthered the company’s ambition to be a global player in the

most advanced renewable energy technologies.

Masdar has also awarded contracts to tap an energy source unfamiliar in the Gulf: geothermal power.

Masdar, together with an Icelandic firm, was plannning to commence drilling in early 2010 of at least two

wells to depths of 3 kilometres and 4 kilometres to tap underground heat that amounts to between 80 and

140 degrees Celsius under Masdar City. If the expected heat sources are encountered, they will be used to

dry out dessicant from the city’s cooling system.

Research into new energy sources and improvement of existing systems is already taking place at the

Masdar Institute of Science and Technology (MIST), which was set up in partnership with the prestigious

Massachusetts Institute of Technology (MIT). The Institute is expected to be an incubator of patents and

proprietary technology that Abu Dhabi hopes to one day export abroad. In October 2009, the Institute was

commissioned by Boeing, the aircraft manufacturer, Honeywell UOP, a fuel technology firm, and Etihad

Airways to study the feasibility of producing aviation fuel from saltwater plants grown in Abu Dhabi. Masdar

officials expect more such grants in the years to come.

U N I T E D A R A B E M I R A T E S 2 0 1 0

nuclear

programme

The UAE believes that that the most environmentally friendly and most sustainable solution to its energy requirements is electricity generated by nuclear plants.

Therefore, nuclear reactors are destined to become the UAE’s second most important source of energy in

the UAE after natural gas, producing about 25 per cent of the UAE’s electricity by 2020 and ensuring the

continued economic development of the nation.

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130 > UAE 2010

In 2009, highly important milestones were achieved in the country’s nascent civilian nuclear programme.

Most significantly, UAE President, H.H. Sheikh Khalifa bin Zayed Al Nahyan, issued a decree on 23 December

2009 that formally established the Emirates Nuclear Energy Corporation (ENEC) as the entity in charge of

implementing the UAE’s nuclear programme. ENEC will oversee the construction and operation of nuclear

plants and coordinate the distribution of electricity across the country with federal authorities. The board

members of ENEC are Khaldoon Khalifa Al Mubarak, Chairman; Minister of Foreign Trade Sheikha Lubna Al

Qasimi, Deputy Chairman; Mohammed Sahu Al Suwaidi; and David F. Scott.

In an address on the occasion of the UAE’s thirty-eighth National Day, Sheikh Khalifa explained the UAE’s

approach to nuclear energy:

“Our interest in renewable energy is inseparable from our project to develop a peaceful programme of nuclear energy to meet our growing energy requirements, based on the highest standards of transparency, safety and nuclear security, in accordance with international laws, and in full cooperation with the International Atomic Energy Agency… The model we have adopted is consistent with our support of and conformity with the Non-Proliferation Treaty, and our rejection in principle to the existence of weapons of mass destruction in the Middle East, calling on Israel to dismantle its military nuclear facilities and join the Non-Proliferation Treaty and subject its nuclear facilities to international inspections. We also urge Iran to continue cooperation with the international community to allay fears and doubts about the nature of its nuclear programme. We call on the parties concerned to reach a peaceful agreement on this to ensure the security and stability in the region and its peoples.”

In October 2009, the Federal Government had approved a law that formally set the nuclear programme

in motion, with the creation of an independent nuclear safety regulator, the Federal Authority for Nuclear

Regulation (FANR), which will be responsible for the oversight of the peaceful nuclear energy sector within

the country and the enforcement of nuclear safety and radiological protection standards. FANR will also be

responsible for the licensing of operators in the nuclear sector and the monitoring of radiological materials.

Nuclear ContractsThe developments outlined above were followed by the award of a Dh75 billion (US$20.44 bn) contract

on 27 December 2009 to a consortium of South Korean and US companies led by Korea Electric Power

Corporation (KEPCO) to build and operate an array of reactors in the UAE, following a three-way competition

among consortia from France, South Korea, Japan and the US.

Right: H.H. Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, greets Lee Myung-bak, President of the Republic of Korea.

132 > UAE 2010

The contract calls for KEPCO to build four reactors by 2020, with safety-related construction of the inaugural

unit to commence in 2012. The first of the four 1400-megawatt units is scheduled to begin providing

electricity to the grid in 2017.

The Korean consortium was selected for its commercial offer, its capacity to deliver the plants on time,

and a prime contractor structure in which KEPCO was put firmly in charge of a team of other engineering

and construction companies. KEPCO’s detailed plans for training programme to gradually Emiratise the

workforce that will operate the reactors were also instrumental in the company’s success.

The importance of building a qualified workforce has been essential to the UAE’s approach to its nuclear

energy programme. Current estimates show that by 2020 the programme will require at least between

2100 and 2300 staff. ENEC is committed to ensuring that Emirati women and men play a major role –

occupying positions of authority and responsibility throughout all aspects of the programme. To this end,

ENEC is partnering with the Khalifa University of Science, Technology and Research, the Institute of Applied

Technology, FANR, other bodies in the UAE educational system, and international universities to train the

necessary reservoir of talent, both Emirati and expatriate, well into the future. As part of the programme,

Emiratis students have been sent abroad by ENEC to study for bachelor and masters degrees in nuclear,

electrical or mechanical engineering at American and European universities. The third class of students was

due to join the programme in early 2010.

Launch of the Nuclear Energy ProgrammeThe formal international launch of the UAE’s nuclear energy programme took place on 2 April 2008, with

the release by UAE Foreign Minister H.H. Sheikh Abdullah bin Zayed Al Nahyan of the full text of a policy

white paper entitled ‘Policy of the United Arab Emirates on the Evaluation and Potential Development of

Peaceful Nuclear Energy’, following its endorsement by the UAE Council of Ministers.

Sheikh Abdullah stressed that the UAE’s interest in nuclear energy stems exclusively from a desire to meet

growing domestic energy demand in a commercially, environmentally responsible, and sustainable manner.

He added, however,

“… the Government of the United Arab Emirates recognises the special circumstances and considerations that surround not only the deployment of nuclear reactors, but also the simple evaluation of such a

133 > nuclear programme

possibility. Accordingly, the Government of the United Arab Emirates wishes to make clear its peaceful and unambiguous objectives in respect both of its current evaluation of a peaceful nuclear energy programme as well as the potential future deployment of actual nuclear power generation facilities within its territory.

To accomplish this objective, the Government has developed and is launching a formal policy document describing its approach to the evaluation and potential development of a peaceful domestic nuclear energy programme.”

The Foreign Minister referred to the set of guiding principles embraced by the UAE, including complete

operational transparency, non-proliferation, the highest standards of safety and security, close coordination

with the International Atomic Energy Agency, (IAEA), cooperation with the governments and companies

from responsible nuclear supplier nations and a commitment to long-term sustainability. He noted that:

“These principles have led us to adopt a series of commitments and strategies that are outlined in the policy document and which we believe constitute a useful model via which, not only the United Arab Emirates, but other non-nuclear states could pursue the benefits of peaceful nuclear power with the full backing and confidence of their domestic populations and the wider international community.”

Sheikh Abdullah commented that some of the salient points of these commitments and strategies include a

determination by the Government of the UAE to conclude a number of pertinent international agreements,

including the IAEA Additional Protocol, IAEA Convention on Nuclear Safety, IAEA Amendment to the

Convention on the Physical Protection of Nuclear Material and IAEA Joint Convention on the Safety of Spent

Fuel Management.

He added that the Government of the UAE, in an effort to limit the danger of proliferation, has also adopted

a policy renouncing the development of any domestic enrichment or reprocessing capabilities in favour of

long-term arrangements for the external supply of nuclear fuel.

International Community Confidence The UAE nuclear programme has received the full support of and confidence of the international

community and it has been seen as a model, and described as the ‘gold standard’ for developing a nuclear

energy programme.

135 > nuclear programme

In this regard, the UAE and the IAEA signed on 8 April 2009 an Additional Protocol to the Nuclear Safeguards

Agreement, establishing a procedure for stringent inspections of nuclear facilities and operations, and

further strengthening the nation’s commitment to non-proliferation as it evaluates a potential civil nuclear

energy programme.

The IAEA describes the safeguards systems as ‘a confidence-building measure, an early warning mechanism’,

in its work to ensure that nuclear programmes are not used for nuclear weapons purposes. Among other

measures, the Additional Protocol establishes a procedure for snap inspections of nuclear facilities, and

provides guidelines for allowing inspectors access to facilities and information.

The IAEA’s Board of Governors had approved the UAE’s request to sign up to the model Additional Protocol

on 3 March 2009. The UAE joined the Non-Proliferation Treaty in 1996, and signed the IAEA agreement on

nuclear safeguards in 2003.

The UAE Federal Government has also signed landmark nuclear cooperation agreements with a number

of foreign governments. On 15 January 2009, the UAE and the United States signed a bilateral agreement

for peaceful nuclear cooperation that enhances international standards of nuclear non-proliferation, safety

and security. Known as a ‘123 Agreement’, after Section 123 of the US Atomic Energy Act, the new pact

establishes the required legal framework for commerce in civilian nuclear energy between the two countries.

The nuclear agreement was approved by US President Barack Obama in April and came into force in

December 2009.

Another memorandum of cooperation was signed with Japan on 19 January 2009, while additional

agreements had earlier been signed with Britain and France. In a statement on 28 December 2009, the

French Government expressed its readiness to join the UAE in implementing its peaceful nuclear energy

programme and reiterated its commitment to the strategic partnership with the UAE.

Finally, within the framework of its clearly stated commitment to international co-operation in the field of

nuclear power, on 7 August 2008, the UAE contributed US$10 million towards a fuel bank proposal originally

launched by the Nuclear Threat Initiative (NTI) in 2006. The IAEA praised the UAE donation as another

important milestone towards supporting mechanisms for non-discriminatory, non-political assurances of

supply of fuel for nuclear power plants.

Left: UAE President H.H. Sheikh Khalifa bin Zayed Al Nahyan and Lee Myung-bak, President of the Republic of Korea, observe cooperation agreements being signed by H.H. Sheikh Abdullah bin Zayed, UAE Foreign Minister, and Lee Youn Ho, Korean Minister of Knowledge Economy.

U N I T E D A R A B E M I R A T E S 2 0 1 0

telecommunications and postFostering telecommunications is a major part of UAE Government strategy, based on the awareness that connectivity is a key component of public infrastructure and a necessary asset in a knowledge-based economy.

Today, telecommunications across all platforms in the UAE are fast and effective

with fixed-line, internet and mobile connectivity among the best in the world, making

it an ideal digital hub for the region.

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138 > UAE 2010

This was underlined in the latest edition of the ‘Global Information Technology Report’, produced by the

World Economic Forum, which lists the UAE in twenty-seventh place in its Networked Readiness Index

(NRI) 2008–2009 rankings, marking it out as one of the highest rated networked economies in the world

and the highest in the Gulf. The NRI measures the capacity of economies to fully leverage information and

communications technology (ICT) for increased competitiveness and development.

Telecommunications OperatorsThe UAE’ telecommunications sector is regulated by the UAE’s Telecommunications Regulatory Authority

(TRA) and is presently serviced by two telecommunications operators, Etisalat and du, both of which are

majority owned by the Government. Both providers have shown remarkable resilience in the difficult

macroeconomic climate.

Etisalat has been investing in communications infrastructure and providing, since its establishment in

1976, a full range of telecommunications service, including fixed-line telephony, fixed and wireless internet

access, cable TV and mobile coverage in the UAE.. The corporation operated a monopoly until du launched

mobile services in 2007. However, Etisalat remains the UAE’s biggest telecom provider and is expanding

dramatically internationally. Etisalat is now the sixteenth largest telecommunications firm in the world and

its international subscriber base is in the region of 100 million, with operations covering nearly two billion

people across its 18 markets around the world.

Despite the economic downturn, Etisalat maintained 9 per cent year-on-year growth in net profits and

6 per cent in revenues in 2009 and the prospects for 2010 are very positive. The corporation’s impressive

growth in revenues over the previous three years having helped finance strategic expansion, it does not

suffer from indebtedness and has continued to spend where needed, whether on services or infrastructure,

such as the fibre-optic network being rolled out in Abu Dhabi, which will be completed in 2011, ensuring

that the capital will be the first city in the world to be fully connected in this manner.

du offering voice, data and entertainment on mobile networks and converged broadband, TV, and landline, is

concentrating primarily on building its customer base in the domestic market and continues to show steady

growth in revenues as well as subscribers. du has quickly gained a 32 per cent share of the UAE mobile phone

market of 10.3 million subscribers, up 10 per cent on 2008, due in part to its strategy of moving away from

targeting low-spending customers and towards more lucrative subscribers with data-rich mobile devices.

140 > UAE 2010

While Etisalat has focused on expanding its core telecoms operations internationally, du is taking a different

route with its push into digital services such as online media. du is now considering up to four new ventures

as it looks to expand its business outside the UAE and maintain its growth outlook. In the first half of 2010,

du will help launch an Arab online platform for content providers, a digital lifestyle offering similar to Etisalat’s

eLife telecoms bundle and an internet traffic management venture. The company will also help launch a

domestic mobile television service by the end of the year.

Both Etisalat and du recently launched telecoms services in the Burj Khalifa, the first location in the UAE

where residents can choose their broadband provider.

SatellitesAl Al Yah Satellite Communications Company PrJsc (Yahsat), is the UAE’s first nationally-owned satellite

operator and is a wholly owned-subsidiary of Abu Dhabi government-owned Mubadala. The Abu Dhabi-

based company will provide innovative satellite solutions for government and commercial communications

in the Middle East, Africa, Europe and south-west Asia. Yahsat will launch the Yahsat 1A satellite in October

2010 and is scheduled to launch the Yahsat 1B satellite in the first half of 2011. This will enable Yahsat to offer

a satellite broadband service ‘Yahclick’ throughout the satellite’s range.

Abu Dhabi-based Thuraya Satellite Telecommunications Company, a leading provider of cost-effective,

satellite-based mobile telephone services through dual-mode handsets and satellite payphones, is majority

owned by Etisalat. Thuraya empowers people in rural and remote areas as well as those at sea or beyond

the reach of terrestrial networks by providing them a reliable access to voice and data communications.

The company launched a third geosynchronous satellite in 2008: Thuraya 3 replaces the ageing Thuraya

1, while Thuraya 2 will continue to provide coverage for the Middle East, Europe, North Africa and some

other markets. Thuraya 3 brings countries of the Asia-Pacific region, including such major markets as China,

Australia, Japan, Korea and Indonesia under Thuraya’s footprint and extends its coverage to nearly two-

thirds of the globe’s population. Thuraya unveiled a new corporate identity in 2009 and also launched its

new ruggedly practical handheld phone, the Thuraya XT.

Postal ServicesEmirates Postal Corporation (EPC) was formed in 2001 following restructuring of the UAE General Postal

Authority. Since then, a major change in the corporation’s business model and operational strategies, including

141 > telecommunications and post

the introduction of integrated IT systems, automated sorting centres and agreements with international

postal authorities, as well as the addition of new business streams in cargo and logistics, financial services,

direct marketing, mail fulfilment and other areas, has resulted in a remarkable turnaround in the company’s

fortunes. A holding company, Emirates Post Group, oversees a rapidly expanding family of subsidiaries

that now includes Emirates Post, the postal corporation, Empost, the UAE’s national courier company, the

Electronic Documentation Centre, Emirates Marketing and Promotions, and the Wall Street Exchange Centre.

Emirates Post continues to pursue a successful diversification strategy, acquiring new businesses and forming

new alliances.

The UAE was re-elected to the Universal Postal Union’s 40-member Council of Administration (CA) and

was elected to the 40-member Postal Operations Council (POC) for 2009 to 2012, reflecting the important

role that it has been playing in the Union.

The UAE’s postal services centenary on 19 August 2009 was celebrated by Emirates Philatelic Association

and Emirates Post with an exhibition of some of the rarest and oldest stamps collected by their members.

Emirates Post also opened its one hundredth post office in the UAE in 2009.

U N I T E D A R A B E M I R A T E S 2 0 1 0

social

affairs

Previous chapters have highlighted the vast strides in economic and infrastructure development in the UAE since the foundation of the state.

However, none of this would have been possible without people, and

it is the desire to improve the standard of living of its people and the

general well-being of society that has driven much of Government

policy, not just in economics but also in social affairs.

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144 > UAE 2010

In a few short years, enormous social changes have taken place in a society that was once largely tribal and

it is a remarkable achievement, despite this considerable upheaval, that the UAE is a secure and stable open

progressive society, renowned for its tolerance, humanity and compassion.

Government efforts to assist society in the process of change have been bolstered by a policy, instituted

in 2009, that sermons at Friday prayers throughout the UAE’s mosques must concentrate on the social and

educational role of religion, not just religious dogma. Topics include how to bring up children, women’s

rights, the importance of work, love of country, and tolerance.

Human Development IndexEach year the UN publishes the Human Development Index (HDI), which looks beyond Gross Domestic

Product (GDP) to a broader definition of well-being. ‘The HDI provides a composite measure of three

dimensions of human development: living a long and healthy life (measured by life expectancy), being

educated (measured by adult literacy and gross enrolment in education) and having a decent standard of

living (measured by purchasing power parity, PPP, income)’. This provides ‘a broadened prism for viewing

human progress and the complex relationship between income and well-being’.

Between 1980 and 2007, UAE HDI rose by 0.72 per cent annually from 0.743 to 0.903 today, which gives

the country a rank of thirty-fifth out of 182 countries for which data is available, ensuring that the UAE is

included among the list of countries with very high human development.

DemographicsThe Federal Demographic Council (FDC) was formed in November 2009 to work towards striking a balance

in the UAE’s demographic structure whilst strengthening the loyalty of UAE citizens to their leadership and

homeland. As well as developing national policy in this area, the Council will also conduct demographic

research and establish an integrated database to assist in drawing up new strategies and initiatives. In

addition, the Emiratisation Council will be annexed to the FDC as both bodies complement each other.

The demographic issue to which the FDC mandate refers is the imbalance in the ratio between the population

figures for UAE citizens and the high proportion of expatriates that have flocked to the UAE’s shores to assist

and share in the recent economic boom. As a result of this influx, the UAE has one of the highest population

growth rates in the world and has a predominantly male and youthful populace.

145 > social affairs

HDI value Life expectancy at birth (years)

Adult literacy rate(% ages 15 and above)

Combined gross enrolment ratio (%)

GDP per capita(PPP US$)

1 Norway (0.971)

1 Japan (82.7)

1 Georgia (100.0)

1 Australia (114.2)

1 Liechtenstein (85,382)

33 Qatar (0.910)

33 Slovenia (78.2)

68 Suriname (90.4)

101 Fiji (71.5)

2 Luxembourg (79,485)

34 Portugal (0.909)

34 Kuwait (77.5)

69 Viet Nam (90.3)

102 Malaysia (71.5)

3 Qatar (74,882)

35 United Arab Emirates (0.903)

35 United Arab Emirates (77.3)

70 United Arab Emirates (90.0)

103 United Arab Emirates (71.4)

4 United Arab Emirates (54,626)

36 Czech Republic (0.903)

36 Brunei Darussalam (77.0)

71 Brazil (90.0)

104 Maldives (71.3)

5 Norway (53,433)

37 Barbados (0.903)

37 Barbados (77.0)

72 Myanmar (89.9)

105 Turkey (71.1)

6 Brunei Darussalam (50,200)

182 Niger (0.340)

176 Afghanistan (43.6)

151 Mali (26.2)

177 Djibouti (25.5)

181 Congo (Democratic

Republic of the) (298)

Source: UN Human Development Index 2009.

United Arab Emirates HDI (0.903)

146 > UAE 2010

At the end of 2009, the population of the UAE was estimated to be 5.06 million, up from 4.76 million in 2008,

an annual growth of around 6.3 per cent. The national population increased from about 892,000 at the end

of 2008 to 923,000 at the end of 2009 while the number of expatriates in the UAE rose from 3.873 million to

4.143 million (or 81.7 per cent of the population).

Although much of the increase in population can be attributed to immigration, the growth rate of the local

population (estimated at 3.4 per cent in 2009) is also considered high given their relatively low number, which

has more than doubled over the past 15 years.

Despite the rapid growth in its population, the UAE has maintained its position as one of the wealthiest

nations in terms of GDP capita income, which was estimated at Dh195,000 (US$53,133.5) at the end of 2008,

second only to Qatar in the Arab world.

148 > UAE 2010

Census 2010The figures outlined above are estimates, based on visa registration figures: the last national census took

place in 2005 and the first ever in 1975. The next population review will be in April 2010, resulting in more

accurate figures. Organised by the Ministry of Economy in conjunction with the Abu Dhabi Statistics Centre,

the population and building census will cost Dh65 million. About 10,000 experts and analysts, including no

less than 8000 census takers, will take part. Field surveys in the rural and suburban areas have already begun.

Census 2010 is designed specifically to take into account the unique attributes of the UAE population

structure and it will ultimately furnish the Government with precise data that will help in developing socio-

economic and demographic policies.

National Identity CardsThe UAE Identity Authority (UAEIA) is in the process of issuing national identity cards to citizens and

residents in accordance with Federal Law No 9 of 2006 and Cabinet ordinance No 201/1/2007pertaining to

the population registration and identity card (PRIDC). These regulations make it obligatory for all citizens of

the UAE and residents who are above the age of 15 to obtain ID cards.

The deadline for registration by UAE citizens was 22 November 2009, whilst expatriates living in the UAE

have been granted an extension until the end of 2010. After these dates the Interior Ministry will not process

any transactions from unregistered citizens or residents for the services provided by them.

The national identity cards can now be used by travellers at airport e-gates nationwide and the scope of

use of the ID card will be expanded to include other services like replacing health, labour cards and driving

licences, facilitating e-commerce transactions and the issuance of passports. The project, it is hoped, will

result in a unified national ID card for citizens and expatriates that will help enhance stability and security

while drastically improving administrative efficiency, ultimately benefitting the Government and the people.

Social ResponsibilityReinforcing communities that once relied on tribal links is a prerequisite for development in a vastly

increased population and a more sophisticated society. Social responsibility is a key aspect of community

participation. Voluntary work is seen, therefore, both as a duty and ‘a symbol of solidarity and cooperation

among individuals in the community’ commented H.H. Sheikha Fatima bint Mubarak, on launching the

149 > social affairs

‘One Million Volunteers’ campaign in July 2009, in association with the Zayed Giving Initiative, the Family

Development Foundation, the Abu Dhabi Chamber of Commerce and Industry and the Emirates Voluntary

Centre. Many government and private institutions are also expected to join the campaign as part of their

corporate responsibility initiatives.

The objective is to pool together the capabilities and experiences of people from divergent backgrounds

in order to carry out sustained community development and humanitarian projects, both locally and

internationally. It is hoped that the programme will inculcate a culture of care and voluntary work among

individuals and corporate bodies, which, in turn, will strengthen the social fabric and enhance the quality

of humanitarian work.

Emirates Foundation’s Social ProgrammeVolunteerism in the pursuit of social responsibility is a major focus for the Emirates Foundation, the UAE’s

leading philanthropic organisation. The Foundation, which was set up by H.H. Sheikh Mohammed bin

Zayed Al Nahyan and is led by H.H. Sheikh Mansour bin Zayed Al Nahyan, specialises in harnessing private

and public sector partnerships for the good of society. Volunteering and social services form the central

core of its volunteer wing Takatof, which is active both at home and abroad.

The Takatof-Ramadan Project is a wide-reaching initiative that entered its third year in August 2009. The project

provided assistance to low-income families across the UAE whilst promoting civic and social responsibility

through volunteering.

Takatof volunteers participated in the Habitat for Humanity’s annual Jimmy and Rosalynn Carter Work

Project in 2009 where thousands of international volunteers helped to build or repair homes in Cambodia,

China, Laos, Thailand and Vietnam.

Takatof launched its second voluntary project in Morocco in July 2009, the first in 2008, a pioneering

initiative in the Arab world, having been a huge success. A 20-member delegation participated as part of

the programme’s international volunteering initiative.

Takatof volunteers also assist in cultural and sporting events throughout the UAE and abroad and were hugely

popular with the crowds that attended the 2009 inaugural motor-racing Grand Pix on Yas Island, Abu Dhabi.

150 > UAE 2010150 > UAE 2010

The Gulf Voluntary Forum (Takatof 2009) was held in Abu Dhabi in June to allow other Gulf organisations to

learn, at first hand, from the UAE’s experiences.

The Emirates Foundation also provides funding for other social and for educational projects in the UAE. The

Foundation announced in August 2008 that it would be giving grants totalling Dh2.5 million in an initiative

to assist social and educational non-profit organisations in the UAE. Funds can be used for activities that

contribute to the effectiveness and sustainability of the organisation, excluding the purchasing of land

or funding endowments. The Emirates Foundation Scholarships were launched in September 2008, in

association with the Ministry of Education, to finance voluntary ventures initiated by schools.

In February 2009 the Foundation’s Social Development Programme announced that it is funding 13 new

research projects to provide vital insights into the attitudes and habits of young Emiratis as part of a project

that has been jointly funded by the Occidental Petroleum Corporation. To encourage UAE nationals to

develop further research skills and acquire experience, each project is required to have at least one Emirati

colleague working on the research team.

151 > social affairs151 > social affairs

In addition, the Foundation’s 2009 Support for Special Needs Projects’ grants are aimed at encouraging a wide

range of initiatives to help the less privileged in UAE society. Projects that have benefited included the launch

of an Augmentative and Alternative Communication (AAC) unit within the Rashid Paediatric Therapy Centre,

providing tools for those with impaired hearing, including electronic communication devices. A second grant

recipient is providing more than 400 people with art therapy, delivered by three new ‘artists in residence’ and

overseen by the Zayed Higher Organisation for Humanitarian Care Special Needs and Minors Affairs’ (ZHO).

Social WelfareThe family has always been the cornerstone of UAE society. Today, socio-economic issues can challenge

even the most committed of family members and the state offers support to those in need, particularly the

elderly, the disabled and divorcees.

Social security benefits in the form of financial assistance, which amounted to Dh2.2 billion in 2008, are

administered by the Ministry of Social Affairs. In recent years, the social care net has been widened to

include additional categories of potential recipients and benefits have been increased.

152 > UAE 2010

Practical help is also offered by ministry-supported social centres run by the General Women’s Union.

In addition, a wide array of governmental and non-governmental charitable organisations are involved

in social welfare programmes in the UAE. The UAE Red Crescent Authority, in particular, is the largest

charitable organisation in the country, administering comprehensive social, economic, health and

educational programmes.

Renowned for its international activities (see chapter on Foreign Aid), the UAE Red Crescent Authority (RCA)

announced in 2009 that it is bracing preparing for a new challenging era of giving and charity within the UAE.

HousingThe provision of housing for Emiratis was an important topic in 2009. Tens of thousands of Emiratis have

applied for government housing and the waiting list is up to five years long. However, the Government is

giving priority to local housing needs and is intent on building communities that have the requisite facilities.

In March 2009 Abu Dhabi’s Urban Planning Council (UPC) stated that it intended to build more than 50,000

homes for Emiratis over the next 20 years. Later in 2009, the Abu Dhabi Centre for Housing and Service

Facilities Development was established by the UPC to oversee building standards, execution of the projects

and allocation of new homes and sites to UAE nationals.

Almost 17,000 new villas for Emiratis will be built in the emirate over the next five years in 23 separate

locations. Most houses and plots will be given to citizens free of charge. The Centre will implement the

UPC’s policies in accordance with Plan Abu Dhabi 2030, and will award all the contracts for the infrastructure

and the construction of the buildings. The new entity will also act as an integrated community developer

and collaborate with the private sector to apply the principles of Estidama, the UPC’s sustainability initiative.

The projects are divided into three regions: 2874 villas and 2000 plots of land are involved in nine towns of

Al Gharbia (the Western Region), and 3056 villas and 977 plots in 14 towns of the Eastern Region around

Al Ain. In the capital, the new Centre will monitor the 43-square-kilometre South Shamkha development,

consisting of up to 10,500 villas, and a smaller 168-villa project close to Aldar’s 5000 villas in Al Falah. The

plots will be given to Emirati families to build their own homes, whilst the Centre itself will ensure that

the infrastructure for the buildings, such as water and electricity supplies, is of an adequate standard. The

infrastructure for the first 3000 units in South Shamkha will be ready by the last quarter of 2012.

153 > social affairs

The most advanced project in Al Gharbia is the 788-villa development Marabi Al Dhafra in Madinat Zayed,

where the first 200 houses have already been handed over to the Government. The focus now is on facilities

including schools, mosques, playgrounds, spas, clubs, and malls. In all the projects, 15 per cent of the homes,

located near shopping malls, parks and other facilities, will be designed for the disabled and elderly.

Throughout the country, the Sheikh Zayed Housing Programme, funded by Government to provide housing

grants and loans for UAE citizens, continued to expand its activities. Early in the year, it approved 665 new

applications for loans and 191 applications for grants, these being distributed as follows: 106 in Abu Dhabi,

46 in Dubai, 158 in Sharjah, 163 in Ajman, 44 in Umm al-Qaiwain, 174 in Ra’s al-Khaimah and 174 in Fujairah.

In association with the locally based Saud Housing Programme in Ra’s al-Khaimah, the SZHP also invited

residents, particularly in remote rural areas, to apply for loans, following the carrying out of a survey that

showed that much of the housing stock is sub-standard. Around 8000 people have already applied to

both programmes for assistance in previous years, of whom 6000 have already been given possession of

new houses.

During 2008, a total of 4492 people received loans and grants from the SZHP, according to its acting director-

general, Mohammed Abdul Aziz Jassem, with over 20,000 new applications being approved. The number

was expected to increase during 2009. The minimum amount of housing loans from the SZHP is Dh500,000

(US$136,000), and consideration is being given to raising this amount, subject to official approval, although

Jassem noted that it would be necessary to strike a balance between the number of applications, market

developments and the amount of funds available to the programme.

U N I T E D A R A B E M I R A T E S 2 0 1 0

labourThe private sector provides the majority of jobs in the UAE, accounting for nearly 63.3 per cent of the total workforce in 2008.

While the federal government employs 7.9 per cent, 10.7 per cent work for local governments, 4.1 per cent

work in joint local-federal departments, and the remainder are employed in diplomatic missions and

houses as domestic workers.

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According to Ministry of Economy data, most UAE national employees are concentrated in the federal

public sector, which accounts for 45 per cent of the total local manpower in the country. About 35 per cent

of citizens are employed in local departments of individual emirates.

The UAE unemployment rate increased to about 4 per cent in 2008, up marginally from 3.45 per cent

in 2007, and was set to record another rise in 2009 because of the economic slowdown. At 6.6 per cent,

unemployment was higher in rural areas, compared to 3.4 per cent in urban areas.

The workforce accounted for 63.2 per cent of the UAE’s total population of 4.48 million in 2007 and was

projected to increase slightly to 63.8 per cent of the 4.76 million population in 2008. In 2009, it is estimated

to have climbed to 64.4 per cent of the population of 5.06 million.

According to Ministry of Labour estimates, the registered number of employed expatriate workers grew

from 3.11 million in 2007 to 4.07 million in 2008, a 31 per cent annual increase. A total of 1.51 million new

labour cards were issued in 2008, up from 983,000 cards in 2007. At the same time, cancellation of cards rose

from 376,000 in 2006 to 543,000 in 2008.

The Number of Workers Increased at High Rates

Source: MOL

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

2003 2004 2005 2006 2007 2008

5

10

15

20

25

30

35

Empl

oym

ent g

row

th in

%

Num

ber o

f wor

kers

in m

illio

n

The private sector provides the most number of jobs in the UAE, accounting for nearly 63.3 per cent of the total workforce in 2008.

Source: MOL

Employment in Construction Grew the Fastest (in thousands)

2,500

2,000

1,500

1,000

500

0

2006 2007 2008

Construction

Trade

Manufacturing

Others (6%)

Hotels and restaurants (3%)

Transportation (6%)

Real estate (7%)

Manufacturing (11%)

Trade (19%)

Construction (48%)

Construction Included the Largest Number of Workers (2008)

At 48 per cent, the construction sector was the biggest provider of jobs, followed by the trade sector

with 19 per cent, and manufacturing with 11 per cent. In 2008, 1.93 million workers were employed in the

construction sector.

Emiratisation PolicyIn a country with diverse demographic challenges, Emiratisation is a crucial item on the Government

agenda. The federal and local authorities are continuously drawing up and implementing initiatives to

support the policy of expanding participation of the country’s citizens in the workforce. Among these are

the establishment of the National Human Resource Development and Employment Authority – Tanmia,

the Abu Dhabi Emiratisation Council, the Dubai-based Emirates National Development Programme and

the Department for Human Resources Development in Sharjah. These organisations help develop the

capabilities and skills of nationals in order to create a better balance in the labour market.

As a result of market conditions, as well as the availability of expatriate labour, many UAE citizens have been

unable to find suitable work. Over 89,000 UAE citizens registered for prospective jobs with the above-

mentioned organisations, according to local media reports in June 2009. However, this number includes

many who have applied for better jobs while they continue to hold jobs elsewhere.

159 > labourLeft: Khuloud Al Faraz, Emirati dessert chef at Madinat Jumeirah Resort.

It is estimated that about 800,000 jobs are created each year in the UAE, most of them by the private sector.

However, up to 10 per cent of employed UAE nationals resign each year citing discontent over low wages

in the private sector, a lack of training and development opportunities; negative stereotyping; and a lack of

trust between employers and employees.

Emiratis hold about 15,000 jobs in the private sector. Given the shrinking percentage of citizens in the total

workforce of the country, it is estimated that they may account for less than 4 per cent of the total workforce

in 2020.

Emirates Council for EmiratisationFollowing a review of the programme, the Cabinet established the Emirates Council for Emiratisation in

June 2009. The primary function of this body is to avoid duplication between federal and local Emiratisation

authorities. The council includes representatives from all federal and local authorities, higher education

departments and the private sector in order to ensure a unified, nationwide plan.

While the Council formulates policies, standards and criteria for Emiratisation, the implementation process

will be the responsibility of the local authorities. The Council is also responsible for preparing nationals for

160 > UAE 2010

employment, particularly in the private sector. This is expected to produce a new national training agenda, as

well as the first national human resources database, which will provide relevant information to all stakeholders.

The UAE Vice President, Prime Minister and Ruler of Dubai, H.H. Sheikh Mohammed bin Rashid Al Matkoum

has appointed an inquiry team to investigate the lack of adequate progress in the Emiratisation process.

Explaining his decision, he said:

“The development of education, the competencies and capabilities of the UAE nationals will remain our main priority… The Emiratisation level does not exceed 54 per cent in ministries and 25 per cent in federal authorities…

I am positive that most of the private sector companies prefer to recruit UAE nationals as part of their Corporate Social Responsibilities. Also salaries of UAE nationals – however high they may appear to be – are far less than those of expatriates. Employing a UAE national will open the door for more interaction with government departments and local customers, who are eventually the highest spenders. If some companies fall short of their responsibilities toward the local workforce, then the government will intervene through a set of measures and incentives to encourage these companies to live up to the expected level of responsibility.”

161 > labour

In a similar vein, opening a two-day forum entitled ‘Advancing and Retaining UAE Nationals in the Workplace’,

Minister of Higher Education and Scientific Research Sheikh Nahyan bin Mubarak Al Nahyan said:

“Emiratisation is a necessary, but sometimes elusive, goal. At first glance, it appears that full employment of citizens of the UAE should be a fairly simple matter. The number of people seeking employment, after all, is relatively small when compared to the large number of jobs required to drive our nation. However, there are many complications connected with social, economic and technological considerations that affect the placement of nationals seeking employment…

For emiratisation to succeed, we must explore ways to increase the share of employment for nationals in the private sector. We seek a situation where every private sector employer develops and implements a plan to aggressively recruit and employ nationals. We need a proactive role from all corners of the private economy: First to help articulate their employment needs; second to create and seek to fill appropriate employment opportunities for nationals in their companies; and third, to provide on-the-job training programmes to enable nationals to develop the skills and experience to advance in their companies…

We must develop strategies with private sector employers to help persuade nationals that employment in the private sector is highly desirable. We must work to overcome flawed stereotyping of nationals as employees; and we must provide data and information about different careers and job openings to students and others seeking work across the country…”

Labour-friendly MeasuresLabour issues have taken centre stage in the UAE’s development process in recent years. This is not only

due to the importance of new projects, which are driving the country’s economy, but also due to the fast-

changing policies related to expatriate workers’ rights and welfare. Numerous efforts are being undertaken

to ensure the safety of workers, guarantee payment of wages on time and to improve living and working

conditions, as well as strict enforcement of law to minimise violations.

According to the Labour Ministry’s 2008–2009 report, there are 4.1 million workers in the private sector,

an increase of more than 30 per cent over the previous year. Despite the challenges, the UAE is aiming

to manage and govern the working environment in line with international laws and best international

labour practices.

162 > UAE 2010

Some of the labour-friendly measures undertaken during 2009:

X A specific action plan to raise awareness on human rights-related labour issues was outlined by the Labour

Ministry at the beginning of 2009. The initiative was coordinated by 17 government departments and

included the private sector. Between January and April, the Ministry, in collaboration with the International

Labour Organisation’s Regional Office for Arab States and the United Nations’ Regional Office of the

High Commissioner on Human Rights, organised a series of events to qualify labour inspectors and other

Government inspectors to address human rights issues in the discharge of their functions, as well as to raise

public awareness on labour and human rights. These events included a training course on inspection and

human rights, a train-the-trainer workshop, and an orientation campaign on upholding a culture of respect

for human rights and culminated with a seminar that discussed a host of issues, including human rights in

work places, combatting forced labour, public-private partnership in upholding fundamental human rights

and promoting corporate social responsibility.

X A newly-established facility at Dubai Police to monitor human trafficking also has the mandate to address

workers’ complaints. Between February and October 2009, this department responded to 344 complaints

from workers calling on the hotline service. About 1100 labour accommodation sites were inspected by the

department, of which 277 were re-inspected after falling short of the basic regulations.

X At the Global Forum on Migration and Development in Athens in November 2009, the UAE acknowledged

the contribution that contractual workers make to its economy and reiterated its commitment to protecting

their rights and empowering them to fully benefit from their residency in the country. “The UAE has a

particular interest in models of migration that are labour-oriented and of a temporary or circular nature,”

Labour Minister Saqr Ghobash said. At the Forum, an annual international meeting for voluntary, non-

binding and informal discussion that investigates the methods through which migration may contribute

towards development goals, the UAE urged the international community to acknowledge that migratory

patterns are very diverse and that policy responses must, in consequence, be flexible and adaptable.

Wage Protection System (WPS)

Since the end of November 2009, it is mandatory for all business organisations with 100 or more employees

to channel their workers’ salaries through the banks, which is a marked shift from the previous system of

cash payments to blue-collar workers. As part of the WPS, the Labour Ministry intends to expand this plan

to include all business organisations by May 2010. The system, which is being enforced in cooperation with

163 > labour

the Central Bank and local exchange companies, not only helps timely payment of salaries, but also assists

the ministry in verifying if companies make improper deductions from the salaries of workers.

Every employee will be issued an electronic card, which can be used at particular cash-dispensing machines

for which their employers have signed agreements. The WPS grants an employer the right to choose one

or more agents licensed by the Central Bank to take part in this system. The bank with which the company

has an agreement will send the payroll to the WPS. This, in turn, sends the salary data to the accredited

agent. The workers then receive their salaries. The database at the Ministry of Labour will simultaneously

receive the same salary data. By November, more than 500,000 workers were already receiving their salaries

through bank transfers. According to Labour Minister Saqr Ghobash:

“The WPS reflects the UAE’s pioneering position in the region, and will increasingly project the country as a model worth emulating in the area of boosting the rights of workers. It is our ethical and legal responsibilities always to strive to come up with innovative means of implementing our leadership’s policies which aim at providing secured and stable environment and at protecting the rights of all segments of the society.”

Decent Work Country ProgrammeThe Labour Ministry, in coordination with the International Labour Organisation has begun the process of

establishing the ‘Decent Work Country Programme’. This is a protocol of technical cooperation that seeks to

achieve its goal through four strategic approaches:

1 Create an environment where the fundamental principles and rights at work are observed, particularly

combatting all forms of discrimination at work.

2 Endeavour to create more employment opportunities for women and men to enhance their access to decent

jobs and income through adoption of suitable education and training policies that are responsive to labour

market needs.

3 Strengthen national capabilities to enhance and expand the umbrella of social protection and support the

role of social security networks in protecting the less-privileged segments of society.

4 Consolidate social dialogue and ensure proactive contributions of the social stakeholders in formulating the

UAE socio-economic policies.

164 > UAE 2010

The preparatory phase identifies the country’s priorities under each of these four workstreams. This

demonstrates the Government’s commitment to work closely with its social partners toward achieving a

set of objectives that include enhancing access of men and women to decent and productive work, in an

environment where the principles of freedom, justice, security, dignity and humanity are observed, and

human resource development is encouraged.

The ILO technical team is involved in engaging government officials, employers and professional

associations in the formulation of priorities, goals and deliverables of this programme. An important

element of the programme includes developing the national workforce and strengthening the capability

of formulating and implementing policies of localisation of jobs, particularly for new entrants to the

labour market.

Pilot ProjectFollowing the approval of the Abu Dhabi Declaration by all major labour-sending and labour-receiving

countries of Asia in 2008, the UAE Labour Ministry, along with the Indian and the Philippines Governments,

began in 2009 a pilot project to survey and document best practices in the management of the temporary

contractual employment cycle. The three Governments are collaborating towards the development of a

pilot project with expert input from the Arab Labour Organisation, the International Labour Organisation

and the International Organisation on Migration.

The overall goal of the project is to test a range of practical measures that will serve to improve the quality

of life and work of contractual workers. The project has been divided into four phases: first, the creation

of a more transparent and fair recruitment and deployment process for workers desiring to come to

the UAE; second, the creation of more effective institutions that can assist temporary contractual workers

during their time of employment in the UAE; third, the identification of workers whose contracts are

expiring and the creation of programmes to prepare workers for their return to their own country; and

last, the creation of institutions and policies that will more effectively reintegrate workers in their country

after they return.

More specifically, the pilot project, involving about 3000 workers, will provide each participating temporary

contractual worker with an understood, agreed and enforceable contract before departure, will deliver

customised and gender-sensitive orientation sessions and will provide administrative, skill and medical

assessments in order to ascertain before departure if the workers meet the UAE’s legal requirements for entry.

166 > UAE 2010

All these will be undertaken in a spirit of shared responsibility and partnership. The project will leverage

the introduction in the UAE of new policy guidelines and enforceable measures that ensure the protection

of wages, the provision of adequate work and living conditions, access to avenues of legal redress, and the

upholding of fundamental human rights. The UAE hopes to draw from this attempt the substance of a

draft comprehensive regional framework for cooperation among Asian countries of origin and destination

that will demonstrate lessons learnt and best practices in the effective administration of the full temporary

contractual employment cycle.

The ultimate aim of the pilot project is to search for new and more humane ways to use the skills and work

efforts of temporary contractual workers. The project demonstrates that it is possible to implement reforms

that engender a fairer and more productive environment for employers and employees alike.

Managing Fallout of Economic CrisisAs a consequence of the world financial crisis and the resultant global economic slowdown, the UAE labour

market also experienced contractions and related problems, particularly in the private sector. Among other

steps, the Labour Ministry minimised the repercussions by adopting the following measures:

X The ministry set up a hotline (800665) for workers to lodge complaints over unpaid salaries. The new initiative

dubbed ‘My Salary’ also facilitates workers to air their grievances online (www.mol.gov.ae) through the

ministry’s portal if their dues are delayed by 15 days or more. Complaints can be filed in 12 languages

including Arabic, English, French, Hindi, Farsi, Russian and Urdu. The results of the new measure were evident,

for example, when 331 complaints were recorded in May 2009, the first month after it was activated.

X Since the beginning of the year, shelters were set up under the auspices of the Higher Committee for Labour

Crisis Management for workers who lost jobs, work permits and accommodation. Nine teams were formed

all over the country, with operations rooms receiving labour complaints around the clock. Illegal workers

are allowed to stay in these shelters till their cases are reviewed with their sponsors and amicably settled in

accordance with the labour law. These shelters also offer food and medical facilities.

X Contrary to several reports about the existence of a labour outflow due to the economic slowdown, the

labour minister announced that while 405,000 visas were cancelled between October 2008 and March 2009,

662,000 new ones were issued, thus indicating that more expatriates found, rather than lost, jobs in the UAE.

167 > labour

Construction workers cite improved conditions Seventy-nine per cent of construction employees, originating from key Asian source markets, and currently residing in Abu Dhabi and Dubai, said their situation is better now than it was before arriving in the country, according to the findings of a survey into working conditions in the construction industry, commissioned from Zogby International, an independent US-based polling organisation.

The April–May survey (2009) – which interviewed 752 construction employees and had a margin of error of plus or minus 3.6 per cent – asked about satisfaction levels at workplaces, accommodation standards, quality of general services and the choice of the UAE as a work destination.

“The findings offer an independent, transparent and reliable account of working conditions in the UAE’s construction sector, from the employees’ perspective. This report will be an important tool for the Government to streamline current policies more efficiently and drive relevant, future initiatives to deal more effectively with persistent challenges,” the Ministry of Labour said.

According to the report’s findings, 88 per cent of those surveyed held a favourable opinion of the UAE. In addition; 79 per cent said their situation is better than it was before they arrived in the country; 69 per cent expressed satisfaction with their current position and 77 per cent believed that they were better off today than they were five years ago. However, looking forward to the next five years, the respondents were evenly split about whether they would be better placed.

The report also found wages to be the biggest issue for workers, with 71 per cent stating that current salary levels were poor. On the other hand, workers were more than satisfied with other working conditions, such as safety (81 per cent), prompt payment (70 per cent), health services (64 per cent) and housing conditions (50 per cent).

When asked if they would continue in their current job, 57 per cent said they would, while nearly all those wishing to change jobs wanted to remain in the UAE.

The report also addressed the issue of recruitment practices in workers’ home countries, with transparency being an area of concern. Only 41 per cent of respondents rated the recruiter’s honesty as acceptable. Sixty-three per cent rated the quality of the information provided by the recruiter as good, with 80 per cent believing their job was the same or very similar to the one described to them when they were hired. When asked what was important to them in terms of improving the quality of their lives, 76 per cent said it was important to visit their families more regularly and 97 per cent wanted to call home more frequently.

169 > labour

Moving ahead, as part of the Labour Ministry’s plans to protect workers’ rights and improve their working and living conditions, new rules for labour accommodation standards – Manual of the General Criteria for the Workers’ Accommodations – approved by the Cabinet in June, will be implemented. These include mandatory consultation with the ministry on construction of new accommodation complexes that are in line with international standards, renovating existing camps within set grace period and closure of camps that do not meet the ministry’s requirements. For example, ZonesCorp, an Abu Dhabi-backed corporation that operates specialised economic zones, is working towards providing accommodation that meet international standards for 800,000 workers in the emirate by 2012. Plans are also under way to extend the midday break during summer, which affects about two million construction workers, from two to three months (June-August).

“Because of the nature of the needs of the labour market, the UAE shows special attention to the models of labour migration of a temporary or circular nature. At the same time, the country also perceives very well that it can also take advantage of good practices related to migration models that might be very different.” Labour Minister Saqr Ghobash

Labour InspectionsMinistry of Labour inspectors conducted a total of 231,205 on-site visits in 2008, including 10,866 visits intended to raise awareness about rights and obligations, 58,536 follow-up visits to monitor compliance with the Labour Law and ministerial decrees, 7,665 first-time inspections, 13,422 health and occupational safety and accommodation inspections, 54,591 visits to enforce midday break during summers, and 1,805 inspections to investigate workers’ complaints. Site inspections resulted in the initiation of legal action against 7,083 enterprises that were found to be violating laws.

Labour Disputes A total of 32,368 labour disputes were recorded in 2008, involving 46,862 workers. In all, 6,471 complaints were referred to courts and 17,507 cases were shelved for lack of follow-up interest by the complainants.

170 > UAE 2010

U N I T E D A R A B E M I R A T E S 2 0 1 0

human

rights

The UAE respects the integrity of every individual residing in the country. Its commitment to guarantee equality and social justice for all citizens is embodied in the Constitution.

The Constitution also outlines the freedoms and rights of all citizens,

prohibits torture, arbitrary arrest and detention, respects civil liberties,

including freedom of speech and press, peaceful assembly and

association, and the practice of religious beliefs.

page 6 | uae 2010 U N I T E D A R A B E M I R A T E S 2 0 1 0

174 > UAE 2010

The Government is firmly committed to promoting in a constructive way the principles of the Universal

Declaration of Human Rights and is determined to improve its own domestic record and to make a positive

difference at the global level.

Mindful of the significance of its human rights record, the UAE is investing its energies in the bringing up

to date of its own laws and practices. The Government is also aware of the need to place a high priority on

respect for human rights in accordance with international human charters and customs. This is based upon

the country’s cultural heritage and religious values, which enshrine justice, equality and tolerance.

At the national level, the Government strategy focuses on ensuring country-wide sustainable development.

Among others, the Government’s welfare initiatives focus on the empowerment of women, development

of high-quality education and healthcare systems, as well as the assimilation of members of society with

special needs and other vulnerable groups into the development process.

In the international arena, the UAE has played an active role in providing aid to developing countries and

protecting the environment and natural resources. Organisations such as the UAE Red Crescent Authority,

Abu Dhabi Development Fund, the Zayed Foundation and Dubai Cares have built bridges with the rest of

the world and demonstrated the UAE’s commitment to help the less fortunate across the globe in terms of

both humanitarian aid and the right of all children to access education.

175 > human rights

Important human rights-related developments during 2009:

X A study prepared by a Government committee was presented to the Cabinet proposing accession to the United

Nations Convention against Torture and other Cruel, Inhuman or Degrading Treatment or Punishment.

X At the United Nations General Assembly deliberations on the protection of the Rights of the Child, the UAE

said it is examining the possibility of signing two Optional Protocols, having already signed the Women’s

Anti-Discrimination Convention, Convention on the Rights of the Child, International Labour Organisation

Convention on Minimum Age, and the Convention on the Rights of People with Disabilities. Efforts are under

way to promulgate a draft national law for better protection of children, in line with the Convention on the

Rights of the Child. The proposed law provides for the establishment of a hotline to respond to children’s

problems and encourages the establishment of associations or clubs specialising in child affairs, as well as

calling for the appointment of a special judge to handle cases related to children. The draft also contains

provisions covering children with special needs, and urges care in all areas, including education, health and

vocational rehabilitation. Although children are already protected by law, the proposed legislation would be

the first dedicated to tackling all forms of child abuse.

X An initiative to create the first local civil society organisation to protect the rights of children was announced

and a department has been set up for the welfare of orphans.

176 > UAE 2010

X The Government has initiated a detailed study of human rights commissions in various countries to help

formulate its own national institution, in line with the Paris Principles.

X Plans to introduce human rights education for students in schools are being actively considered.

X As part of an awareness drive, a symposium was organised by the Human Rights Directorate at the Ministry of

Interior, attended by delegates from various ministries, federal and local departments, civil society organisations

and United Nations Development Programme.

X To commemorate the sixtieth anniversary of the Universal Declaration on Human Rights, the Higher Colleges

of Technology, in collaboration with the Swiss Embassy, organised a series of campaigns for youth.

X Du, the country’s integrated telecom operator, and the Ministry of Social Affairs jointly launched Musahama,

a comprehensive web portal for civil society organisations in the UAE.

X The Working Group Report on the UAE’s Universal Periodic Review was unanimously adopted at the tenth

session of the Human Rights Council in Geneva, three months after the country’s report was presented in

December 2008.

X The UAE presented a report to the International Committee on Fighting Racial Discrimination in Geneva,

outlining the steps it has taken to enforce the International Convention on the Elimination of All Forms of

Racial Discrimination. The Committee welcomed the UAE’s achievements.

X Responding to the official invitation extended by the Government, two special UN rapporteurs – one on

the sale of children, child prostitution and child pornography, and the other on contemporary forms of

racism, racial discrimination, xenophobia and related intolerance – visited the UAE separately and held

discussions with various ministries, civil society organisations, academics and ordinary citizens. Commending

the Government’s ‘cooperation and openness’, a preliminary report of the rapporteur on racism said: ‘The

recent review of the UAE by the Committee on the Elimination of Racial Discrimination and by the Universal

Periodic Review of the Human Rights Council demonstrates that the authorities are willing to find ways and

means of addressing human rights challenges faced by the people in the UAE and to ensure compliance

with international human rights standards.’ The UAE welcomed the preliminary findings as ‘constructive’

and ‘recognition’ of the Government’s proactive initiatives.

178 > UAE 2010

The Ministry of Social Affairs signed the United Nations Convention on the Rights of Persons with Disabilities

and its additional protocol. In December, President Sheikh Khalifa issued a law ratifying the Convention.

X In another landmark move, the President issued Federal Law No.14 of 2009 amending Law No 29 of 2006

on people with special needs. The change means that phrases like ‘the disabled’ and ‘disabled individuals’,

wherever they occur in the law, will be replaced with “Individuals with Special Needs’ and “Individual with

Special Needs’. Even the word disability’ will be replaced with the word ‘Special Needs’.

X With the launch of special services on buses for physically challenged people in December, Dubai became

the first city in the region to have an integrated public transport system fully accessible to people with special

needs. According to Road Transport Authority officials, all modes of public transport, including the Dubai

Metro, public buses, marine transport and even some taxis now meet mobility requirements of people with

special needs.

X Dubai announced in December that it intends to build a five-dome Human Rights Village, with each dome

addressing a specific issue. While the first is expected to focus on human rights from birth to death, the

second would focus on health, the third on food and water, the fourth on education, and the fifth consisting

of a ‘challenging room’ where human rights issues could be discussed and addressed.

X Under the auspices of the Zayed Higher Organisation (ZHO) for Humanitarian Care, Special Needs and

Minors Affairs, the UAE launched the second phase of the National Project for Inclusion, which intends to

expand services to people with special needs across the country and increase people’s understanding of

special needs, as well as helping those with special needs to participate equally in society. Public and private

organisations participating in the programme are required to meet international standards to improve their

services and accessibility to disabled people as part of an effort to assimilate people with special needs into

society, to improve their lifestyles and to safeguard their human rights. The ZHO enrolled 34 special needs

students in government schools during the last two years and has been monitoring their progress under

the supervision of specially trained educators. Five other hearing-impaired students were sent abroad for

education. It also helped find employment in various organisations for ten individuals with special needs,

seven of whom were women. Among the programmes offered by the ZHO are vocational training, education

and qualification services; management and investment of minor funds; social and psychological care;

evaluation services, early intervention, physiotherapy, functional therapy; social and psychological care and

total care for orphans.

179 > human rights

Human TraffickingIn recent years, the most severe test for the country’s human rights record has come from problems associated

with labour issues, specifically human trafficking. Some of the temporary contractual workers that the UAE

receives every year from throughout the world, unfortunately, are deceived by labour recruiters and become

victims of human trafficking. For the majority of trafficked persons, it is only when they arrive in the UAE

that they realise that the work they were promised does not exist and they are forced instead to take

up employment in other jobs or under conditions to which they did not give consent. Since the deceit

begins before the workers leave their home countries, the importance of partnering with source and transit

countries is now paramount to the UAE’s strategy to combat human trafficking.

In order to institutionalise the fight against human trafficking the Government has devised a four-pillar

strategy – legislation; enforcement; victim support; and bilateral agreements and international cooperation.

As part of its legislation process, the Government enacted Federal Law 51 in 2006. The law takes into

account the existing federal laws on entry and residency of foreigners, labour, camel races and criminal

procedures, as well as the Penal Code. It calls for strong punitive measures, including maximum penalties

of life imprisonment and covers all forms of human trafficking – not just overt enslavement, but also sexual

exploitation, child labour and commerce in human organs. The UAE is currently studying the possibilities for

amending Federal Law 51 so that it can be harmonised more closely with the Palermo Protocol.

In order to ensure effective enforcement of Federal Law 51, a Cabinet decision in 2007 established the National

Committee to Combat Human Trafficking, which serves as a coordinating agency. The multidimensional

committee includes representatives from the federal ministries of Interior, Foreign Affairs, Labour, Health

and Social Affairs, as well as State Security and the UAE Red Crescent Authority. Regular workshops are

being organised to enhance the skills of law enforcement officials dealing with this crime.

The victim support programme includes protection, counselling and rehabilitation. Police departments and

non-Government organisations provide shelter and support for human trafficking victims until they are

able to acquire the right documents and many victims are then sent home at the Government’s expense,

under the Crime Victim Assistance Programme. These shelters include the Dubai Women’s and Children’s

Foundation, which was established in July 2007, and Ewaa in Abu Dhabi, which opened in late 2008, as well

as the Human Rights Care Department in Dubai and the Social Support Centre in Abu Dhabi, which have

been operating for several years.

180 > UAE 2010

The Dubai and Abu Dhabi shelters, which have together hosted nearly 100 victims so far, adhere to

international standards and provide medical treatment, psychological care and counselling, access to legal

services, temporary housing, basic education and training, apart from safely sending them back home,

when required. The UAE Red Crescent Authority is planning to soon establish shelters across the country

with Government assistance, and the National Committee to Combat Human Trafficking is studying a

mechanism of laws and bylaws that would facilitate the process of licensing more shelters.

Realising that the fight against human trafficking should be a collective effort, the fourth pillar of the UAE

action plan – bilateral agreements and international cooperation – has several dimensions. Since trafficking

most often begins in the home countries of victims, the UAE has signed agreements with at least eight labour-

sending countries during the last three years to check the flow of workforce and prevent trafficking at the

roots. The UAE is working with many countries at the bilateral level and with the International Organisation for

Migration, International Labour Organisation, International Training Centre for Human Trafficking Prevention in

Belarus and several UN organisations.

Anti-human trafficking-related developments during 2009:

X The UAE ratified the United Nations Protocol to Prevent, Suppress and Punish Trafficking in Persons, especially

Women and Children (Palermo Protocol).

X Three new human rights-related institutions have recently been set up – the Human Rights Department

at the Ministry of Interior, the Dubai Community Development Authority and a permanent taskforce of

specialists, especially prosecutors, to tackle human trafficking in Dubai.

X Two separate delegations – comprising law enforcement officials and shelter personnel – took part in training

programmes at the International Training Centre for Human Trafficking Prevention, part of the Academy of

the Belarus Ministry of Internal Affairs.

X A workshop and training programme was held in cooperation with the International Organisation for

Migration, to improve the knowledge base of the UAE law enforcement officials dealing with human

trafficking cases, especially with regard to victim identification.

X The Cabinet issued orders to add more prosecutors to the National Committee to Combat Human Trafficking.

182 > UAE 2010

X The ‘Global Report on Trafficking Persons’ – released by the United Nations Office on Drugs in 2009 – was

funded through a Dh55 million donation to the UN.GIFT from HH Sheikh Mohammed bin Zayed Al Nahyan,

Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces.

X According to the 2008–2009 annual report documenting anti-human trafficking efforts, at least 20 cases

were registered in 2008, ten more than 2007, which reflects the stepping up of the UAE’s efforts to tackle

trafficking. There were convictions in at least six cases, one more than the previous year. Most traffickers and

victims are Asian, with some from Eastern Europe, with their ages ranging from 18 to 26 years.

X To further increase public awareness, the National Committee to Combat Human Trafficking launched a

dedicated website www.nccht.gov.ae. This will serve as an official source of information, as well as an effective

channel for public awareness and a tool of communication between the people and the committee.

In a similar vein, a public awareness campaign against human trafficking is scheduled to begin at the

country’s airports.

Child Camel JockeysThe UAE’s most high-profile effort to address human trafficking occurred several years ago in response to

recruitment practices taking place in the traditional sport of camel racing. Once aware of the child exploitation

occurring in this sport, the UAE banned the use of children jockeys below the age of 18, in 2002, and became

the first country to instead use robots as jockeys. It also requested technical expertise from UNICEF to help

protect and rehabilitate child victims.

A rehabilitation centre for young former camel jockeys was established in Abu Dhabi, the first of its kind in the

world, which provided shelter and offered rehabilitation programmes. The Dh10 million dirham repatriation

efforts included establishment of transit centres providing medical assistance and other services to affected

children, a family tracing system, social care for children, educational campaigns and establishment of

community care committees.

Between May 2005 and September 2006, the UAE’s efforts resulted in nearly 1100 child camel jockeys being

successfully and safely returned to their home countries in Asia and Africa. Child protection experts and

government representatives from the UAE, Bangladesh, Mauritania, Pakistan and Sudan, as well as UNICEF

officials, participated in a review process in 2006 and evaluated both results and gaps to support and

reintegrate children involved in camel racing.

183 > human rights

Some of the initiatives that were undertaken as part of this holistic programme included:

1 Awareness campaigns with camel owners in the UAE to ensure that they ceased to employ child jockeys

2 Establishment of transit centers providing medical assistance and other services to affected children in Sudan

3 Family tracing system verified by justice authorities in Mauritania

4 Social care of children and back-to-school campaigns in Pakistan

5 Establishment of community care committees in Bangladesh

6 Maintaining follow-up mechanisms empowering non-government organisations and local institutions to

oversee the payment of outstanding salaries to child beneficiaries

In order to strengthen the comprehensive reintegration procedures, the UAE and UNICEF agreed in April 2007

to establish a second and expanded phase of the rehabilitation programme, which commenced in 2009.

As a follow-up measure, the UAE committed Dh30 million, which helped in country-based interventions to

tackle trafficking by focusing on the establishment of monitoring mechanisms to prevent children formerly

involved in camel racing from re-entering hazardous or exploitative labour.

In 2009, a senior Ministry of Interior delegation assessed the progress made in the rehabilitation process.

As part of this effort, the UAE and Mauritania formally closed the files of over 500 former child jockeys,

according to the UAE Special Committee for Rehabilitation of Camel Jockeys. Officials also travelled to

Bangladesh where payments were made to hundreds of former child jockeys. The UAE was expected to

complete its compensation scheme to former child jockeys in Pakistan and Sudan by the end of December.

In all, the UAE has undertaken at least 26 social and economic projects related to rehabilitating and

reintegrating the former camel jockeys into their home societies. Though the UAE considers that the issue of

child camel jockeys is now finished, as a local level, the ministries of Social Affairs and Interior, in coordination

with the country’s Special Committee for Rehabilitation of Camel Jockeys and UNICEF, continue to pursue

follow-up action in countries of origin.

The UAE has made significant progress in a short period of time, but realises that much more

needs to be done, and is ready to move ahead constructively and systematically in improving its

human rights record. The Government is committed to serving as a model for change in the region

and an active member of the international community. In keeping with this, it is developing and

harmonising its human rights standards with international principles, as well as diversifying and

strengthening the mechanism and institutions promoting these causes.

“The coordination and cooperation between the public agencies and civil society organisations reflect the depth of inter-relations in the UAE community, whose leadership and government are keen to protect human rights, particularly woman and child rights.”

– UAE Vice-President, Prime Minister and Ruler of Dubai H.H. Sheikh Mohammed bin Rashid Al Maktoum

“The sanctity of childhood is an essential element of our culture.”

– Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces H.H. Sheikh Mohammed bin Zayed Al Nahyan

U N I T E D A R A B E M I R A T E S 2 0 1 0

womenWomen in the UAE have long been recognised as equal partners in national development and the Government continues to pursue a strategy of empowering women in cultural, social and economic fields.

As a result, the UAE is ranked in thirty-eighth place in the 2009 UN Human Development

Report Gender-related Development Index, among the highest-ranked nations.

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188 > UAE 2010

GDI as % of HDILife expectancy at birth (years) 2004

Adult literacy rate (% ages 15 and older) 2004

Combined primary, secondary and tertiary gross enrolment ratio2004

Female as % male Female as % male Female as % male

1 Mongolia (100.0%)

1 Russian Federation (121.7%)

1 Lesotho (122.5%)

1 Cuba (121.0%)

135 Equatorial Guinea (97.3%)

173 Mali (102.9%)

3 Haiti (106.5%)

2 United Arab Emirates (120.4%)

136 Eritrea (97.3%)

174 Timor-Leste (102.9%)

4 Malta (102.5%)

3 Qatar (118.2%)

137 United Arab Emirates (97.2%)

175 United Arab Emirates (102.9%)

5 United Arab Emirates (102.2%)

4 Latvia (117.1%)

138 Sierra Leone (97.1%)

176 Tanzania (United Republic of) (102.9%)

6 Antigua and Barbuda (101.0%)

5 Barbados (116.7%)

139 India (97.1%)

177 Solomon Islands (102.8%)

7 Mongolia (100.9%)

6 Estonia (116.1%)

155 Afghanistan (88.0%)

190 Swaziland (98.0%)

145 Afghanistan (29.2%)

175 Afghanistan (55.6%)

The gender empowerment measure (GEM) reveals whether women take an active part in economic and political life. It tracks the share of seats in parliament held by women; of female legislators, senior officials and managers; and of female professional and technical workers – and the gender disparity in earned income, reflecting economic independence. Differing from the GDI, the GEM exposes inequality in opportunities in selected areas.

United Arab Emirates ranks 25th out of 109 countries in the GEM, with a value of 0.691.

Source: UN Human Development Index 2009.

The GDI Compared to the HDI – a Measure of Gender Disparity

189 > women

Much of the policy of empowerment has been orchestrated by Sheikha Fatima bint Mubarak, Chairwoman

of the General Women’s Union, Supreme Chairperson of the Family Development Foundation and President

of the Arab Women Organisation. In the year under review, Sheikha Fatima gave a number of interviews

in which she outlined the achievements of women in the UAE and continued to stress the necessity of

ongoing support for Arab women’s rights, especially the social and political roles of women in the region.

Sheikha Fatima commented on the occasion of UAE National Day 2009:

“Under a wise leadership that believes investing in people is the most viable form of investment, we are confident that UAE women will continue to be successful. It is enough to say that UAE women are no longer busy claiming their rights, but exercising them.”

UAE women today participate in all institutions of government, including the executive, legislative and

judicial components. Four women sit at the Cabinet table, nine out of 40 members of the Federal National

Council are women and a number of women judges and attorneys, as well as two women ambassadors,

were appointed in the past year. UAE women enjoy careers as pilots and engineers with national air carriers

and in air defence and have also joined the UAE Armed Forces, police and customs. In fact, UAE women

now constitute 66 per cent of the public sector workforce, 30 per cent of whom are in senior posts. Women

also make up 15 per cent of the teaching staff at the UAE University and hold 60 per cent of the jobs in

professions such as medicine, teaching, pharmacy and nursing.

Despite a relatively low representation overall in the private sector, UAE national women are doing well in

business and the 12,000 members of the Businesswomen Council run 11,000 investment projects worth

Dh12.5 billion. UAE national women also represent 37.5 per cent of the workforce in the banking sector.

During the year, gender equality in the UAE in areas such as education, health care and employment was

a topic of discussion at the second Ministerial Conference of the Non-Aligned Movement (NAM) on the

Advancement of Women, held in Guatemala City. Dr Maitha Al Shamsi, UAE Minister of State, pointed out

that the percentage of girls enrolled in UAE elementary schools, at 83 per cent, is approaching parity with

the enrolment of boys, whereas at higher levels, women comprise 70 per cent of the total number of

university graduates, exceeding men, with a steady increase in the number of women holding Masters and

PhD degrees.

190 > UAE 2010190 > UAE 2010

Dr Al Shamsi also commented that women in the UAE enjoy high quality health care as a result of services

provided by the Government, especially in areas of maternity and child care: the rate of maternal death has

been reduced by 86 per cent, 100 per cent of births take place under the supervision of licensed health

professionals, while infant mortality has been reduced to 7.7 per thousand.

General Women’s UnionForemost among organisations dedicated to the empowerment of women is the General Women’s Union

(GWU), which celebrated its thirty-fourth anniversary in 2009. Today, there are around 20 women’s social,

cultural and religious organisations led by the GWU and the Family Development Foundation.

Education and eradication of illiteracy were the preoccupations of the early days of the women’s movement.

Having achieved these goals, the GWU continues to execute a wide range of programmes for the

advancement of women and is at the forefront of legislation and initiatives concerning women, children

and the family.

In October 2009 GWU launched a ‘Know Your Rights’ programme to educate women about relevant

federal and local legislation. The awareness drive is part of the GWU’s efforts to implement the ‘National

191 > women191 > women

Strategy for the Advancement of Women’, formulated in conjunction with the United Nations Development

Programme (UNDP) and launched by Sheikha Fatima. The strategy seeks to activate the role of women and

to ensure their positive participation in eight key areas: education, economy, media, social work, health,

legislation, and environment, as well as in the political and executive fields. The campaign seeks to heighten

awareness among women about their constitutional rights and to build their capacity to defend their legal

rights. In the first phase of the programme, women will learn about international conventions dealing with

women’s rights. (See chapter on Human Rights for more information on international conventions relating

to women to which the UAE is a signatory.)

Previously, in 2006, the GWU, in partnership with UNDP, embarked on a national initiative with staff of the

GWU and other women’s organisations in a capacity-building exercise, enhancing the GWU’s synergy with

government and non-governmental organisations on issues relating to the empowerment of women.

Children’s rights will be the focus of a new strategy that is being developed by the GWU in conjunction with

the United Nations Children’s Fund (UNICEF). The strategy is based on a UN programme called ‘A World Fit

for Children’ and the recommendations of ‘The Arab Childhood Plan 2004–2015’, issued by the Arab League.

(See chapter on Human Rights for more information on children’s rights.)

192 > UAE 2010

The GWU has also been instrumental in helping to establish the Arab Women Organisation and has taken part

in all its conferences (see below). Since 1975 the GWU has also participated in all significant major international

conferences on the development of women. In February 2007, the UAE was elected as a member of the Social

Development Committee of the UN’s Social and Economic Council. This clearly reflects the progress made by

UAE women and their active participation in both regional and international arenas.

Arab Women OrganisationThe second conference of the Arab Women Organisation (AWO), an inter-governmental body established

under the umbrella of the League of Arab States, was held in Abu Dhabi in November 2008. Following the

completion of its organisational structure, formulation of its general policy and creation of the executive

mechanisms, the focus now is on achieving the goals of the AWO. These include empowering women

and building their capacities as human beings and citizens to play an effective role in society, in the labour

market, and in decision-making circles.

As Sheikha Fatima, who was chairperson of the AWO from 2007 to 2009, commented after following

the conference:

“I will continue to work in consultation with my sisters, the First Ladies in the Organisation, to create a real qualitative shift in the mechanisms of work and the activities of the organisation… I will also be committed to the enhancement of the position of Arab women on the regional and international level, with the knowledge that we are an integral part of the world; we will be affected by the developments around us, we will interact with what goes on, will contribute to them with what we own from our wealth, culture and civilisation. In that arena, we will work to project the real image of the Arab woman.”

Media StrategyRecognising that the media plays a pivotal role in social development, changing media stereotypes of

Arab women and their role and status in society is a key component of Sheikha Fatima’s strategy. Based

on this commitment and in implementation of the recommendations made during the first Arab Women

summit held in Cairo in 2000, Abu Dhabi hosted the Women Media Forum in 2002 under the title ‘Woman

and Media: towards a promising media landscape’. The Forum culminated in the promulgation of the Abu

Dhabi Declaration on Women and Media, which provided a strong foundation for the launch of the Women

Media Strategy as well as the endorsement of the first media convention for Arab women.

Right: UAE women enjoy careers as pilots and engineers with national air carriers.

194 > UAE 2010

The Women Media Strategy contained recommendations for implementing three programmes that were

formally launched under the umbrella of AWO during the second conference in Abu Dhabi: namely the

setting-up of a media agency for Arab women, a media monitoring project for Arab women and the media

professions programme. The strategy aims, over an implementation period of six years, commencing in

2010, to create a positive media culture towards Arab women, thereby enhancing the role and status of

women in society.

Sheikha Fatima elaborated on the thinking behind the strategy:

“I also look forward to media that would reflect our national identity, embody our values, authenticity and civilisation as well as Arab and Muslim values of our society, avoid focusing on stereotypes of women but rather safeguard their dignity, focus on efforts to make their achievements on all levels more visible, removing obstacles that hamper the expansion of UAE women’s participation and work in the media.”

Human SecurityHuman security, Sheikha Fatima believes, is basically a universal issue but one where women can play

a major role both in the peace movement and by helping to attain their own security. In her inaugural

address made at the second meeting of the Supreme Council of the AWO, she declared: ‘If the decision to

go to war is made by men, then women can, and should, become the makers of peace’. To confront this

issue, she believes, needs cooperation and coordination on a global level, through openness and positive

dialogue among civilisations.

Arab women are contributing to human security through a pioneering initiative that came in the form

of the Women For Peace Conference which was held in 2002 in Sharm el-Sheikh with the participation

of women’s organisations from Arab and non-Arab countries and the UN. The aim was to promote the

establishment of a global movement of women to play an active role in spreading the culture of peace.

Even before this conference, Sheikha Fatima had set up a special fund for women refugees, in cooperation

and coordination with the UNHCR, and earmarked US$2 million to improve the lives of women refugees in

war zones.

195 > women

The issue of security was discussed intently during the second AWO summit, and the conference urged the

implementation of international conventions concerning the protection of women, which would contribute

to alleviating the physical and psychological hardships that families experience in times of armed conflicts.

Network for Arab WomenSheikha Fatima launched the Network for Arab Women in the Diaspora (NAWD) during the first AWO

conference in Bahrain in 2006 to help Arab women living abroad keep in touch with each other, and provide

information for them, thereby relieving the isolation they face away from their home countries. The NAWD

also facilitates an exchange of views and enables Arab women to connect with their Arab and Islamic culture.

The first phase of the initiative was launched in February 2007. The second phase, which got under way from

March to October 2008, saw the collection of data from over 1000 distinguished Arab women academics

and professionals in various countries around the world with a view to informing young Arab generations

in the Arab world about their achievements. The third phase, which was inaugurated at the second AWO

conference in Abu Dhabi in 2008, will run up to November 2010 and will involve direct communication with

Arab migrant women. The fourth and final phase will feature direct online dialogue.

Tunis SummitSheikha Fatima, participating in the fourth session of the supreme council of the AWO held at the First

Ladies’ level in Tunis, in June 2009, underlined the importance of the periodic sessions as they provide the

opportunity to assess and evaluate results and plan for the future.

Sheikha Fatima stressed that a united approach among the First Ladies of the Arab world would be a significant

factor in assisting Arab women to overcome obstacles that hamper their progress, adding that ‘we have

resolved to continue cooperation with leading Arab women at all levels to empower women to contribute

effectively in sustainable growth’. ‘For Arab women to achieve progress and contribute effectively to the

institutions of civil society’, she continued, ‘women must pursue education and keep abreast of progress, while

at the same time remaining true to their identity, national allegiance, religious teachings and cultural values’.

During the Tunis summit, it was agreed to hold a symposium in 2010 at the United Nations and to issue

a book about the second Arab Woman Conference held in Abu Dhabi. Another major milestone was the

addition of Iraq to the membership, bringing the number of members to 16 countries. The organisation is

looking forward to other Arab countries joining them to serve the cause of women.

U N I T E D A R A B E M I R A T E S 2 0 1 0

educationEducation has been a top priority for the UAE Government since the formation of the federation in 1971.

In the ensuing 38 years, the nation has made considerable strides in

educational attainment, reducing what was once a high rate of illiteracy

among nationals to roughly 7 per cent and providing free universal access

to primary, secondary and higher education for all UAE citizens. 

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198 > UAE 2010

In recent years, the education sector has taken on a new significance: its reform and improvement represents

a critical step in the country’s ongoing development aims, but at the same time presents major challenges for

policymakers if they are to succeed in plans to diversify the economy and reduce private-sector dependence

on imported labour. That challenge can be starkly summed up by demographic figures: according to the

2005 census, 51 per cent of nationals are under the age of 19 while 26 per cent are under the age of nine.

The Government’s plans are linked to a reform of the P-12 school system, in order to provide students with

adequate preparation for the demands of university coursework and private-sector employment. 

A key component of Government strategy has been the decentralisation of educational authority from the

federal Ministry of Education to local education bodies in each emirate. Three major bodies – the Ministry

of Education, which has full jurisdiction over the northern emirates, the Abu Dhabi Education Council,

and Dubai’s Knowledge and Human Development Authority – are working to improve the sector. Other

significant developments included the appointment of a new education minister, Humaid Mohammed Al

Qattami, in the spring of 2009.

Primary and Secondary EducationAddressing the performance of public schools at primary and secondary level has been at the top of the

Government’s agenda for the past decade and in 2009, 23 per cent of the federal budget, or Dh9.706

billion was earmarked for education. But the challenges associated with improving the education system

are ongoing. Studies commissioned by the Ministry of Education in 2001 and 2005 found that only 44 per

cent of teachers had a degree in education and most new teachers spent only two weeks on average in

training before commencing work. At state schools, according to the same studies, teachers were paid

significantly less than those at their international counterparts.

Many Emirati parents in major metropolitan areas send their children to relatively higher-performing private

schools and all but a small minority of expatriate children are enrolled at private institutions, most of which

are run by for-profit companies. Over the last year, government entities at the federal and local level have

sought to improve the quality of private schools through inspection and accreditation schemes to ensure

that every child in the UAE receives a quality education.

Since 2008, when the Ministry of Education released its strategic plan for educational reform, it has been

working toward replacing the old school curriculum with a new standards-based curriculum developed by

200 > UAE 2010

the Abu Dhabi Education Council (ADEC); retraining teachers; developing a model for school accreditation;

and overhauling special education.

In June 2009, ADEC released its strategic plan for the P-12 sector, which charts the course of their reform

agenda through 2018. ADEC, established in 2005, has produced a curriculum in the majority of Abu Dhabi

schools that focuses on acquiring skills. In 2006, ADEC launched a public private partnership programme

(PPP) in its public schools. Initially seen as a pilot programme, PPP was to last for three years, but has now

been extended. The scheme pairs local schools with international firms that are charged with introducing

Abu Dhabi’s new curriculum, increasing instruction hours in English, and providing quality professional

development for teachers without degrees or certificates in education. There are currently 11 companies

working in Abu Dhabi’s partnership schools.

201 > education

ADEC has also increased the amount of instruction in English in Abu Dhabi schools, having hired close to 500

native English speakers to teach in its public schools. Problems with English teaching at government schools

in general have caused delays for pupils entering universities, where English is the primary language of

instruction (see below). ADEC has also lengthened the school day to come closer to international standards

and is also investing heavily in professional development for principals and teachers, as well as working

toward teacher certification. In 2009, ADEC announced that it would replace 100 old school buildings with

new environmentally sound designs over the next decade.

Similar strides to improve local schools in Dubai have been made by the Knowledge and Human Development

Authority (KHDA), a regulatory authority set up in 2006. Major steps have been taken in the past two years

toward collecting reliable data on public and private schools through a number of initiatives such as school

202 > UAE 2010

inspections (see below) and participation in international benchmarking exams. The data will be used to

target key areas for improvement in schools.

The federal Ministry of Education has also announced plans to participate in the next round of two

international exams: TIMSS (Trends in International Mathematics and Science Study) and PISA (Programme

for International Student Assessment). Results from Dubai’s participation in TIMSS revealed that students at

UAE public schools are lagging behind their international peers in maths and science testing.

The UAE is also striving to build a national teaching force, and to meet the challenge of attracting men, in

particular, into teaching.

Accreditation and School InspectionsThere has been significant improvement in private education across the UAE. This is particularly important

given the fact that a relatively high percentage of students in the Emirates are enrolled in private schools: in

Dubai 50 per cent of all students are in private schools, while the number for Abu Dhabi stands at around

40 per cent. 

Many private international schools in the UAE are accredited by international bodies and there are currently

17 International Baccalaureate schools operating in the country, all of which have obtained approval from

the International Baccalaureate Organisation in Geneva to run their programmes.

In an effort to ensure uniform standards across all schools, education authorities have introduced inspections

and accreditation schemes at both federal and emirate levels. Dubai’s KHDA introduced the first-ever

comprehensive school inspections during the 2008–2009 academic year. Prior to the KHDA’s formation in

2006, private schools in the emirate fell under the jurisdiction of the federal Ministry of Education. Summary

inspection reports were published on the KHDA website for parents to read, and the authority published a

report on the state of Dubai schools in the spring of 2009, which revealed a number of inadequacies in the

worst performing schools, ranging from the use of corporal punishment to poor teaching provisions in key

subject areas such as maths, science, Arabic and English.

Inspections of Abu Dhabi’s schools will also be undertaken under the supervision of ADEC. In the autumn

of 2009, ADEC transferred approximately 8000 expatriate students studying in government-run evening

203 > education

schools into regular public schools. By 2012, ADEC will have closed down approximately 70 private schools

that operate out of villas.

In the autumn of 2009, the Federal Government launched a pilot accreditation scheme, which, if successful,

will be rolled out in the northern emirates to ensure that public and private schools are meeting uniform

standards. A timeframe for requiring schools to meet accreditation standards will also be released.

Special EducationReforms to special education are under way across the country. In 2006, the Cabinet passed the UAE

Disabilities Act, a comprehensive law that requires public and private schools to provide equal access to

all children. The law was subsequently amended in 2009 to replace references to disability with the phrase

‘special needs’ (see chapter on Human Rights).

Integration is considered key to the reform of special education at both federal and local levels. The Ministry

of Education began integrating national students from a variety of special needs centres into regular public

schools in 2009.

At the federal level, the ministry is drafting a new set of standards for public and private schools to ensure

that schools comply with the new law, which is due to be implemented in 2010. 

The Abu Dhabi Education Council is also releasing a new set of bylaws for private schools in 2010 under

which penalties will be incurred for non-acceptance of children with special needs. Most private schools are

presently ill-equipped to accommodate children with severe physical and intellectual disabilities. A number

of private centres exist, but most graduates from these centres do not leave school with an academic

diploma. New policies are being developed by the government to address these gaps.

Higher Education Like the P-12 sector, tertiary education in the UAE is undergoing rapid growth and change. The nation

is poised to become a hub for higher education in the region. Federal universities are expanding to

accommodate growing student populations, foreign universities are flocking to the UAE to set up centres

of learning, and the Government has embarked on several partnerships that have allowed top global

universities to establish campuses in the Emirates.

205 > education

UAE citizens can attend federal universities free of charge and generous scholarship funds exist through

the Ministry of Higher Education and Scientific Research and other organisations, both private and

governmental, to allow UAE citizens to pursue higher education at universities abroad. In 2008, the Ministry

of Higher Education and Scientific Research awarded 550 scholarships to students wishing to pursue their

education abroad.

During the 2009–2010 academic year, 13,102 secondary school graduates were awarded a place at one

of three federal institutions or given a scholarship to study abroad, down from 13,315 the previous year.

The UAE University in Al Ain admitted 3146 students, the Higher Colleges of Technology 7423, and Zayed

University 1813. Of those students admitted, 62.2 per cent were female and 37.8 per cent were male.

For the second consecutive year, every UAE citizen who qualified for a place in the federal university system

was able to take up that place as a result of an emergency funding increase. Prior to 2008, a funding deficit

meant that thousands of UAE citizens were denied places at federal universities despite meeting university

qualifications. A new formula that would link funding to the number of qualified students is pending approval

from federal authorities. This would help institutions to cope with growing numbers of UAE citizens expected

to apply to university in the coming years.

Policymakers are also meeting the challenges posed by a lack of proficiency in basic English, the medium of

study at university level. In 2008 only 8 per cent of Emirati university applicants posted scores higher than

185 on the Common Educational Proficiency Assessment exam, which would have allowed them a chance

to bypass remedial English classes and proceed directly into university coursework at UAEU. These ‘bridge’

programmes eat up a substantial percentage of the state higher education budget: in 2008 Zayed University

spent approximately Dh40 million (US$10.8 mn) on its ‘academic bridge’ programme – approximately 20

per cent of its academic budget.

Significant investment in the federal university system took place in 2009. In December 2009, Mubadala,

an investment arm of the Abu Dhabi government, announced it had secured US$1 billion (Dh3.67 bn) of

financing for the new Zayed University campus, which is to be built on 75 hectares in the new Capital District.

The new campus, which is scheduled for completion in 2011, will accommodate up to 6000 students and

staff. Zayed University also received accreditation in 2009 from the Middle States Commission on Higher

Education, making it the first federal university to be accredited by an outside monitoring body.

206 > UAE 2010

The UAE University is the oldest university in the country. With ten colleges, it educates over 12,000 students

every year. More than 40,000 students have graduated from UAEU to date. Like ZU, UAEU has plans for

significant expansion, and a new campus is under construction in Al Ain.

The Higher Colleges of Technology (HCT) system offers thousands of UAE citizens a more technically oriented

education.  Aside from the HCT, several other institutions provide vocational and technical education in the

UAE. Among them are the Etihad training centre, the Emirates Aviation College for Aerospace and Academic

Studies, the Emirates Institute for Banking and Finance, and Etisalat’s colleges and university.

A new vocational education centre, funded by the Abu Dhabi Government, and run by Abu Dhabi Tourism

Development and Investment Corporation (TDIC), opened in 2008 to train residents in the Al Gharbia

(Western)Region in tourism-related jobs, a sector with enormous potential for local employment.

A number of foreign universities, from the Paris Sorbonne to Michigan State University, have opened

campuses in the UAE in the last five years, offering a wider variety of choice to local students. Foreign

universities must obtain accreditation to operate in the UAE from the Ministry of Higher Education and

Scientific Research unless they are located in free zones. Until 2009, universities could open in Dubai’s free

zones without such accreditation, but the KHDA, which regulates education in Dubai, now requires that

universities in free zones be accredited by its own University Quality Assurance International Board or the

Ministry of Higher Education and Scientific Research.

The autumn of 2010 will mark a significant milestone for tertiary education in the UAE, with the opening

of the Abu Dhabi campus of New York University. NYU is the first major American research university to

open a comprehensive liberal arts college in the UAE. The plans for NYU Abu Dhabi, first announced

in October 2007, represent a project unlike any other in global higher education – to create a top

international liberal arts university in the Gulf as part of a ‘global network’ that includes NYU’s campus

in Washington Square, New York. The project is funded entirely by the Abu Dhabi government, and will

function independently of other local universities and the Ministry of Higher Education and Scientific

Research. The first class of students, recruited from around the world, will start coursework in the autumn

of 2010 in a temporary downtown campus until NYU Abu Dhabi’s permanent home on Saadiyat Island

is completed in 2014.

207 > education

INSEAD, one of the world’s largest graduate business schools, has been operating a Middle East campus in

Abu Dhabi since 2007, and now runs seven executive-education programmes. INSEAD’s campus was also

established to better understand and contribute to the development of the MENA region through in-depth

research of important business topics of both regional and global interest.

In February 2008, a branch of the New York Film Academy opened in Abu Dhabi; it will launch its first

bachelor’s degree programme in 2010, with offerings in film-making and acting, and will also offer its first

MA programmes, in film-making and documentary film-making.

The Dubai School of Government (DSG), a research and teaching institution focusing on good governance and

public policy in the Middle East, launched its first masters programme in 2009. DSG now offers two graduate

programs – the Master of Public Administration (MPA) program, which has been designed in cooperation

with Harvard Kennedy School, and the Executive Diploma in Public Administration (EDPA), which is awarded

by the Lee Kuan Yew School of Public Policy at the National University of Singapore. In addition to acting as

a graduate school, DSG researchers produce reports on important issues affecting the Arab world.

The Petroleum Institute (PI) was founded in 2001 with the aim of establishing itself as a ‘world-class’ institution

in engineering education and research in areas of significance to the oil and gas and the broader energy

industries. The PI’s sponsors and affiliates include the Abu Dhabi National Oil Company (ADNOC) and four

major international oil companies. The campus has modern instructional laboratories and classroom facilities

and is now in the planning phase of three major research centres on its campus in Sas al-Nakhl, Abu Dhabi.

In the autumn of 2009, the Masdar Institute of Science and Technology (MIST) opened its doors to its first

class of graduate students. The institute, which is connected to the Abu Dhabi government’s ambitious

carbon-neutral Masdar City project, is a private not-for-profit research centre devoted to the study of

renewable energy. Developed with the support of the Massachusetts Institute of Technology, it will offer

Masters degrees and PhD programmes in science and engineering, and provide fellowships to especially

talented students and researchers.

The Emirates Foundation has also been supporting research into areas such as science and engineering,

information technology and environmental sciences.

U N I T E D A R A B E M I R A T E S 2 0 1 0

healthHealth care provision in the UAE is universal and pre-natal and post-natal care is on a par with the world’s most developed countries.

As a consequence, life expectancy at birth in the UAE, at 78.5 years, has reached levels

similar to those in Europe and North America.

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210 > UAE 2010

PolicyA number of unforeseen events in 2009 impacted on health strategy in the UAE: the global financial

downturn and emergence of the H1N1 virus were not only unexpected and unplanned, but created

circumstances that were entirely new to the UAE.

The efforts of the three major health bodies – Ministry of Health (MoH) Health Authority–Abu Dhabi

(HAAD) and Dubai Health Authority (DHA) – switched rapidly and effectively to preventive medicine, crisis

management and disease control.

The MoH, which has full jurisdiction over the northern emirates, also underwent some major changes in

2009, most significantly the appointment of a new health minister, Dr Hanif Hassan. Since his appointment in

May 2009, the Minister has shifted the focus of the MoH and is concentrating on completing current projects

rather than embarking on new ones. The Ministry is focusing on bringing health care in the northern emirates

up to par with the services offered in Abu Dhabi and Dubai and has restructured a number of committees

including the National Committee Against Diabetes and the Medical Committee for the Eradication of Polio.

In November it launched the Violations Committee in an effort to be more transparent.

The first meeting of the UAE National Committee for Organ Transplantation was held in December 2009 to

discuss progress of legislation regarding the issue of cadaver transplants.

Possibly the most significant policy advancement in the northern emirates was the creation late in 2009 of

a Federal Health Authority. This will be responsible for operating all the public hospitals in Sharjah, Fujairah,

Umm al-Qaiwain, Ra’s al-Khaimah and Ajman. Once up and running, it will be an independent body with its

own budget and target. The aim is to allow the MoH to focus on regulation and legislation.

HAAD has recently amended a number of policies such as the licensing policy for oversees applicants, who

can now apply for a licence online rather than coming to the UAE.

Daman, the national insurance company based in the capital, also set about amending its repayment scheme

to a payments by results system. Clinical outcomes will be published, giving the public more information

on where to seek treatment. Hospitals and clinics have to submit case-by-case data to the insurer who will

work out a repayment figure based on the performance of the facility.

212 > UAE 2010

In 2008 DHA embarked on a four-year transformation programme with heavy focus on regulation, strategy

and funding. However, financial considerations forced decision makers to rethink some of the plans. In

January 2009 DHA began a mandatory relicensing programme that saw almost 6000 physicians register to

have their credentials verified against tailored standards on a par with international guidelines. The process

is ongoing with the ultimate aim of boosting quality of patient care.

New FacilitiesDespite the financial climate, health care in the UAE remains a focus of investment with a number of

government and private projects being undertaken in 2010. SEHA, the health services company that operates

government hospitals and clinics in Abu Dhabi, is funding a multibillion-dirham project to replace Al Mafraq

Hospital, 40 kilometres outside the capital, and Al Ain Hospital, in Al Ain city, by 2013.

The Ajman Health Zone and the MoH are embarking on a Dh500 million expansion project involving

Sheikh Khalifa bin Zayed Hospital and the creation of a number of primary health centres, a diabetes and

obesity centre and a medical fitness centre. Umm al-Qaiwain Hospital is also undergoing a revamp costing

more than Dh400 million and the new 400-bed Jebel Ali Trauma and Emergency Centre in Dubai is due for

completion in 2010. The 200-bed Al Jalila Children’s Speciality Hospital in Dubai is currently being built and

is expected to be ready in 2011.

Mubadala Healthcare, part of the Abu Dhabi government-owned Mubadala Development Company,

launched the first part of its major pathology laboratory project in Dubai in December 2009. Its hub in Abu

Dhabi is expected to open in 2010 and have a dramatic effect on services. The National Reference Laboratory

will be the first of its kind in the region and will test a large number and variety of samples that are currently

sent abroad. It will reduce waiting times for results and costs to local healthcare providers.

Health InsuranceThe introduction of mandatory health insurance in Abu Dhabi for expatriates and their dependents over

two years ago was a major driver in reform of healthcare policy. Abu Dhabi nationals were brought under

the scheme from 1 June 2008. Eventually, in accordance with federal law, every Emirati and expatriate in the

country will be covered by compulsory health insurance under a unified mandatory scheme. For now, Abu

Dhabi continues to lead the way. The number of insured people in the emirate has reached approximately

1.9 million, up from around 150,000 when the scheme was introduced in 2006.

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It has taken some time for the insurance system to evolve and HAAD and Daman, the National Insurance

Company, have made a number of amendments in an effort to boost competition and ensure the

sustainability of the system. In June, HAAD cut the dental entitlement for UAE nationals in the Thiqa

programme down to 50 per cent after discovering it was being abused and fraudulent claims were being

submitted to Daman. The move underlined HAAD’s determination to ensure that the scheme is sustainable.

The DHA’s plans, announced in January 2009, to introduce a new health-funding model that would essentially

provide free access to basic health care to every resident in the emirate, were later postponed. Under the

proposal, rescheduled for phased introduction starting in 2010, individuals will have to register with an

outpatient clinic that would receive a set fee to manage the patient’s care. Employers or sponsors will pay a

fee to the government, which would be mostly used to provide care for employees.

The MoH continued to work during the year on a federal health insurance law that would unify access

to health care across the UAE. Assessments are being made as to its compatibility with the present and

planned systems for Abu Dhabi and Dubai.

Preventive Medicine It is fair to say that now more than ever preventive medicine and public health are critical to the long-term

well-being of the UAE population. The population is still young and experts predict a rise in many of the

lifestyle diseases in coming years. There are a number of cultural barriers that are slowly being eroded but

still affect serious issues such as cancer. The UAE has very high rates of diabetes and cardiovascular disease,

which is one of the top three most common causes of death.

In terms of preventive medicine, the majority of cases of diabetes, cardiovascular disease and obesity–

related illnesses are avoidable. Despite this, diabetes affects one of five people in the UAE and cardiovascular

diseases account for 28 per cent of all deaths. Road traffic accidents also account for 15 per cent of all deaths

in Abu Dhabi, a pattern that is repeated across the country.

HAAD focused heavily on preventive medicine in 2009, launching a number of public health campaigns

and introducing new policies. In June, it tackled safety on the roads and worked with Sheikh Khaled Al

Qassimi, the BP-Ford Abu Dhabi world rally driver, as ambassador for its campaign. Adverts featuring Sheikh

Khaled were displayed in cinemas, on television, in newspapers and on billboards across the emirate.

214 > UAE 2010

Early detection of disease symptoms is crucial to not only saving lives but getting a better understanding

of the epidemiology, leading to improvements in prevention. Health officials put a heavy emphasis on

spreading messages about preventive medicine in an effort to reverse the upward trends predicted for the

future. The Eastern Mediterranean Regional Office for the WHO released a report in 2009 predicting that

the number of cancer deaths in the region would more than double by 2020 if countries did not adopt

more unified and integrated cancer control programmes, including raising awareness about key lifestyle

factors, such as smoking, which can lead to cancer.

HAAD has been vaccinating schoolgirls aged 17 in public and private schools across the emirate. More

than 10,000 schoolgirls have been given the Gardasil vaccine as a protection against cervical cancer. Official

figures show that 70 per cent of cervical cancer cases are diagnosed in the late stages and the chance of

survival is just one in three. It is the second most common cancer in the UAE, after breast cancer.

215 > health

It is also compulsory for women aged between 40 and 60 to get a mammogram when renewing their

Thiqa health insurance card. Only 30 per cent of breast cancer cases in the emirates are diagnosed in the

early stages when the chances of a cure are much higher. Daman also includes breast and prostate cancer

screening in its enhanced plans for men above 45 years old and women older than 35.

Tobacco use is another issue taken very seriously by health officials in the UAE. The DHA is currently

undertaking a year-long campaign that focuses on training medical staff to provide smoking cessation

counselling, primary health care and public awareness.

In January 2010 the Government passed a federal tobacco law that bans smoking in most public places and

imposes other restrictions on the use of tobacco, and the tobacco industry. The draft federal law has been

in existence since 2006 and is expected to be implemented later in 2010.

216 > UAE 2010

Even without the federal ban, most emirates have their own smoking bans in malls, cafes, restaurants,

cinemas and other public spaces. According to WHO statistics, more than a quarter of men in the UAE

smoke, compared to around 2.6 per cent of women. However, 13.2 per cent of girls and 25.2 per cent of

boys aged between 13 and 15 use tobacco including shisha. This is one of the highest rates in the region.

Public HealthIn order to solve a public health problem, it is crucial for everyone involved to have a proper understanding

of exactly what the problem is. In 2009 the MoH released results from one of the largest surveys ever done

in the UAE. In conjunction with the Ibn Sina Pharmacy group, it surveyed 28,000 people of all ages and

nationalities. The results showed that 18 per cent were diabetic and a further 12 per cent were borderline

diabetic. Sixty-eight per cent were overweight or obese and less than half – 47 per cent – had normal

cholesterol levels. It reinforced the importance of raising awareness about prevention rather than treatment.

Primary health care is another crucial tool in public health policy, and something the UAE is working hard

to improve. Sheikh Khalifa Medical City, the largest government hospital health facility on Abu Dhabi Island,

has recently launched a comprehensive family medicine clinic network to encourage people to utilise the

skills of family doctors who can help with preventive medicine and monitor health. The aim is to take a

proactive rather than a reactive approach to public health.

The DHA is also working on establishing a better primary healthcare model that ties into its plans for health

funding and strategy. Through its funding system, people will be encouraged to visit a family doctor who

can monitor their health and look out for any potential warning signs of health problems in the future.

H1N1 Swine FluThe H1N1 pandemic presented an unexpected and significant challenge to the UAE’s health services.

Cooperation between different agencies, understanding of the virus and its epidemiological characteristics,

forward planning and implementing mitigating effects were crucial to ensuring minimal loss of life and best

management of positive cases.

The MoH took a federal approach and led public awareness campaigns, education sessions for the public,

schools and medical community, implementation of new rules governing diagnosis and treatment, and the

administration of the vaccine. It created the Technical Health Committee for Combatting Swine Flu, which

was instrumental in dealing with the pandemic.

217 > health

The Ministry liaised closely with the World Health Organisation (WHO), following its advice and implementing

policies regarding high-risk groups such as young children, the elderly, those with chronic diseases and

pregnant women.

Government agencies including the police, airports, labour officials, ambulance services and education

authorities formed consultation groups to establish best practices for limiting the impact of the virus.

Training sessions for teachers in all public and private schools were held in every emirate and memorandas

were sent on a regular basis to all hospitals and clinics.

At the beginning of the outbreak in April, the MoH concentrated national efforts in airports, borders and

seaports to prevent the virus from entering the country. Thermal scanners in airports were used to identify

positive and suspected cases early, and everyone entering the country was required to complete a health

questionnaire. As the global situation evolved, containment was no longer an option and it concentrated

on mitigating the effects. 

Information on preventive measures was delivered in media outlets, at Friday sermons, in malls, hospitals

and schools. Any high-risk individual who presented with flu-like symptoms was treated as a positive H1N1

case without waiting for official tests. Otherwise healthy individuals who displayed symptoms were either

administered Tamiflu or sent home to rest.

The official death toll released by the MoH was six. However as in all countries, officials stopped counting

individual cases and focused on mitigation. Pregnant women, the elderly and people with pre-existing

conditions were most affected.

To avoid any shortages of the antiviral drug used to treat the H1N1, local pharmaceutical company Neopharma

was given a license by the MoH to produce 20 million capsules of Oseltamivir BR Flu.

When the UAE received 40,000 doses of the H1N1 vaccine, Hajj pilgrims were given priority. Pregnant women

and members of the medical and healthcare community were expected to follow in early 2010.

mediaThe UAE is the commercial heart of the Middle East’s media sector, serving as both a regional hub for a rapidly growing list of international media companies and as a fertile field for the development of one of the region’s most robust domestic media industries.

Nevertheless, because the local industry saw the most growth in the region during the

boom that preceded the global economic downturn, it has been the hardest hit by the

fall in advertising revenues that followed.

page 6 | uae 2010

220 > UAE 2010

As a result, the sector is in the midst of a series of consolidations and reorganisations, from the shifting

of media assets from Dubai’s Arab Media Group to Dubai Media Incorporated to the merging of private

pay-TV giants Orbit and Showtime. However, as Yahoo’s purchase of Maktoob in August 2009 showed, the

global media industry sees enormous potential in the Middle East media sector, particularly in the largely

untapped digital realm, and the UAE stands perfectly poised to capitalise on these opportunities.

The UAE is also making considerable investments in media training institutions, such as the vocational academy

at Abu Dhabi’s media zone, twofour54, to ensure that the media is an attractive and accessible profession for

the nation’s young people, and plays a significant role in helping to diversify the nation’s economy.

National Media CouncilSince picking up where the dissolved Ministry of Information left off in 2006, the National Media Council

has served as the country’s media regulator, responsible for issuing media licences as well as running the

external information department, the Emirates News Agency and the UAE Interact daily news website.

Labour Minister Saqr Ghobash serves as the Chairman of the NMC, which is governed by an executive

committee and a dedicated board of directors.

Licences cover media personnel and companies, as well as the publication of newspapers, magazines,

periodicals and books in free zones. Beyond licensing, the NMC has taken a proactive approach to regulating

the country’s media industry by spearheading, along with the Telecommunications Regulatory Authority,

the effort to bring electronic television audience measurement to the UAE. ‘People meter’ technology, which

measures viewers’ habits and produces audience ratings in real time, is widely used in more developed

television markets, and has long been considered one of the most important steps that the Middle East’s

television industry could take to boost advertising spending and thereby raise production values.

The NMC is also charged with enforcing the country’s media law, which is in the process of being overhauled

in order to protect journalists and enhance ‘freedom of the press’.

WAMEmirates News Agency, whose initials from its name in Arabic, Wakalat Anba’a al-Emarat, give it the widely

used epithet of WAM, is the country’s primary outlet for Government news. Founded in 1976, the agency

transmits news on national, regional and Arab affairs via satellite and internet, as well as via a central news

221 > media

portal run by IPS, to over 1000 newspapers and 2000 broadcast media worldwide. WAM’s staff of around

25 reporters outside the UAE span the globe from Islamabad to New York, also covering the Arab cities of

Cairo, Beirut, Rabat, Riyadh, Damascus, Sana’a, Algiers, Jerusalem, Gaza, Khartoum, Amman, Baghdad and Tunis.

Abu Dhabi Media CompanyIn less than two years, Abu Dhabi Media Company (ADMC), created in 2007 as a public joint stock company

from the assets of Emirates Media, has managed to break ground for the region in nearly every platform of

commercial media.

Much of the innovation has happened in its digital division. In the period under review, ADMC’s digital

media arm formed a partnership with Silicon Valley gaming start-up Gazillion Entertainment to create the

region’s first massive multiplayer online games studio in Abu Dhabi; took a minority stake in Vevo, an online

music video portal created by Universal Music Group and Sony Music Entertainment; and continued the

roll-out of GETMO Arabia, the region’s first legal download site for digital content, through a joint venture

with Avarto Mobile Middle East formed in 2008.

Meanwhile, ADMC’s billion-dollar film fund subsidiary, Imagenation Abu Dhabi, saw its first crop of Hollywood

films hit the theatres in 2008, led by Shorts, a co-production with Imagenation’s partner, Warner Bros,

directed by Robert Rodriguez. Imagenation’s other Hollywood partners include Participant Media, Hyde

Park Entertainment, National Geographic Entertainment and Walter Parkes and Laurie MacDonald of Parkes/

MacDonald Productions, the husband-and-wife team that formerly headed DreamWorks Studios.

ADMC also turned heads when its television arm, Abu Dhabi TV, became the first free-to-air broadcaster

in the region to win the exclusive regional rights to the English Premier League, beginning in 2010. The

company also launched the first free-to-air National Geographic Channel, National Geographic Abu Dhabi,

in 2009, as well as the first classical music station, Abu Dhabi Classics, and the country’s first radio station

blending Arabic and Western pop music, Star FM.

ADMC owns and operates a range of television channels, a network of radio stations, a number of publications

(Al Ittihad newspaper, The National newspaper, Zahrat Al Khaleej magazine and Majid magazine) and several

other media-related businesses, including Imagenation, United Printing Press and LIVE, which owns a fleet

of outdoor high-definition television production vans. It employs more than 2000 people.

222 > UAE 2010

Media ZonesWhen CNN launched its new Middle East-focused news show, Prism, live from its fourth international news

hub in Abu Dhabi’s media zone in November, it was clear that a new age of media had begun in the UAE’s

capital city. The debut was the latest in a string of launches from the zone, named twofour54 after the

capital’s GPS coordinates, in the past year, following its founding in October of 2008. The year 2009 saw

the formal launch of the zone’s vocational training academy, twofour54 tadreeb, as well as its state-of-

the-art high-definition production studios, twofour54 intaj, which were accompanied by a freelance visa

programme for media professionals working with the zone’s partner companies, such as BBC, Thomson

Reuters, CNN and Rotana.

Its business incubator, twofour54 ibtikar, also launched in 2009 with a ventures fund to invest in media

entrepreneurs and a creative lab to turn media-related ideas into commercially viable propositions. Twofour54

also teamed up with MTV Networks International to launch Comedy Central Studios Arabia, which will

develop and produce Arabic-language comedy content for the Middle East market.

The UAE’s original media zone was Dubai Media City, founded in 2001 by Tecom, a subsidiary of Dubai

Holding, to foster the growth of Dubai’s knowledge-based economy. Today it has more than 30 buildings

with more than 1200 registered businesses, including well-known brands like CNN, BBC, MBC and CNBC,

and is expected to continue to grow by about 30 to 40 per cent per year in the number of registered

companies and gross leasable area through 2013. DMC is one of a cluster of media free zones run by Tecom,

including Dubai Internet City, Dubai Studio City and the International Media Production Zone. These parks’

growth has been supplemented by the growth of smaller media free zones such as Fujairah Creative City

and RAK Media City.

Print MediaAt a time when print media is suffering steep declines in much of the world, the UAE remains a beacon, a

place where 70 per cent of the population still reads a newspaper every day and about the same percentage

of advertising spending goes into print. Advertisers in the UAE spent US$1.14 billion (Dh4.18 bn) in newspapers

in 2008, about US$333 million of which went to Arabic papers, according to the Pan Arab Research Center.

Of course, with the decline of the UAE’s big-spending property market, 2009 was a tougher year, with an

overall drop of 36 per cent in advertising spending during the first three quarters, as compared to the same

period in 2008.

225 > media

However, despite the closure of some magazines and the scaling back of some newspapers such as the

Dubai-based business daily Emirates Business 24/7 and 7 Days, the print industry remains strong. In terms of

readership, the English-language market is led by Gulf News and the Khaleej Times, both more than 30 years

old, with the relative newcomer, The National, launched in April 2008 with a staff of 240 journalists hired

from publications like the New York Times, Wall Street Journal and Daily Telegraph, fast gaining market share.

The Arabic-language market is dominated by three broadsheets – ADMC’s Al Ittihad, which turned 40 this

year; Dubai Media Incorporated’s Al Bayan, and Al Khaleej, a privately owned paper based in Sharjah – though

the tabloid Emarat Al Youm has made inroads in recent years. I-Media, a new media company owned by

Sheikh Mansour bin Zayed, Minister of Presidential Affairs, launched the UAE’s first Arabic-language financial

daily, Alroya Elektisadya, in March 2009.

TelevisionTelevision in the Arab world is unlike anywhere else, as satellite owners from Morocco to Saudi Arabia share

access to the same feed of more than 400 free-to-air channels. Within this vast choice, Abu Dhabi TV and

Dubai TV have staked out a respectable market share, registering among the most popular channels.

This past year was a period both of bold new ventures and consolidation, with Dubai Media Incorporated,

the parent company of Dubai TV, Sama Dubai, Dubai One, Dubai Sports Channel and the Dubai Racing

Channel, taking over an array of media assets formerly held by Arab Media Group, a subsidiary of Tecom. DMI

acquired AMG’s Noor Dubai television and radio stations, as well as several print titles and a printing press.

It also has focused this year on expanding its own programming, with Dubai One, the English-language

channel, tripling the number of locally produced programmes.

Abu Dhabi TV, which runs an array of channels including Abu Dhabi Al Oula, Abu Dhabi Al Emarat and the

sports channels Abu Dhabi Al Riyadiya and Abu Dhabi Al Riyadiya 2, launched its first pay-TV channel this

year, Abu Dhabi Al Riyadiya 3, as well as the first free-to-air National Geographic Channel. It also became

part of the UAE’s first high-definition broadcast package when it signed on to offer an Abu Dhabi HD channel

as part of Etisalat’s cable service, E-Vision.

The UAE has also begun to garner international attention for its television production. In November, Prince of

Poets, the American Idol-like show produced by Pyramedia, won the Association of International Broadcasters

award for most creative specialist genre.

Left: H. H. Sheikh Mohammed bin Rashid Al Maktoum at the closing ceremony of Dubai Media Forum.

226 > UAE 2010

FilmAs sources of funding for film-makers dry up around the world, the UAE’s rapidly professionalising film

industry has drawn increasing global interest. A-list stars from Demi Moore to Naomi Watts walk the red

carpet at the country’s film festivals, while behind the scenes, Government-funded organisations work to

educate a new generation of local film executives and financiers who will create a lasting indigenous film

industry in the UAE.

The leading organisation in this effort has been The Circle, created by the Abu Dhabi Authority for Culture

and Heritage (ADACH) in 2007 and taken over by the newly created Abu Dhabi Film Commission in 2008.

Last year’s third annual Circle Conference brought together producers, financiers and executives from

around the world, guided by the expertise of the conference’s partner, ADMC’s Imagenation Abu Dhabi.

The conference, which traditionally runs parallel to the Middle East International Film Festival in the autumn,

culminates with the awarding of the Sasha Grant, a US$100,000 screenwriting contest designed to help

launch the career of an up-and-coming film-maker.

MEIFFThe Middle East International Film Festival (MEIFF), the ten-day festival held each October at Emirates

Palace, reached a new level of maturity during its third run, with selections ranging from Yousry Nasrallah’s

Scheherazade, Tell Me a Story to Michael Moore’s Capitalism: A Love Story. It culminated in the Black Pearl

Awards, whose lifetime achievement award was given to Vanessa Redgrave.

DIFFSince its launch in December 2004, the Dubai International Film Festival has shown more than 400 films,

documentaries and shorts from more than 50 countries. The sixth edition of the festival was held from 9 to

16 December 2009 in conjunction with Dubai Studio City. The festival’s lifetime achievement awards were

given to Egyptian film legend Faten Hamama and Bollywood icon Amitabh Bachcha.

Gulf Film FestivalWhile these larger film festivals have an international sweep, the Gulf Film Festival, now in its second year,

focuses intently on the region. The six-day festival, held in April in Dubai, was dominated by films from the

UAE, with winners including Emirati film-maker Maher Al-Khaja’s The Fifth Chamber - Ouija, the Gulf’s first

full-length horror film.

Left: H. H. Sheikh Abdullah bin Zayed inaugurated Abu Dhabi International Book Fair.

228 > UAE 2010

BooksEver since the United Nations identified a ‘knowledge deficit’ in the Arab world though its controversial

2003 Arab Human Development Report, the institutions of the UAE have been meeting this challenge head-

on, and in the process establishing the UAE as a leader in the GCC’s publishing industry.

Two translation projects responded directly to the UN’s criticism: Kalima, a project of ADACH that funds the

translation, printing and distribution of foreign literature into Arabic; and Tarjem, a project of the Mohammed

bin Rashid Al Maktoum Foundation, which aims to translate more than 1000 books in the three years since

its launch in 2008.

Meanwhile, the Abu Dhabi International Book Fair, organised by Kitab, a joint venture between ADACH

and the Frankfurt Book Fair, enjoyed record crowds at its nineteenth edition in March 2009, which had a

special focus on rights. Kitab also works year-round to tackle the most fundamental problems preventing

Arabic publishing from becoming a profitable enough industry to support professional authors, notably

piracy and the lack of distribution systems. The organisation helped found a UAE Publishers Association in

2009, in preparation for Abu Dhabi’s historic hosting of the International Publishers Association Copyright

Symposium in February of 2010.

Sharjah International Book Fair has been in operation since 1982. This is a ten-day annual event that bridges

cultures in one educational place. The twenty-eighth session of Sharjah Book Fair, which took place in

November 2009, showcases books of more than 750 publishers from nearly 42 nations, with an average

400,000 visitors visiting annually. The main aim of the fair is to inculcate the habit of reading, especially

among the younger generation, and to make quality books available at affordable prices.

Intellectual Property ProtectionIt is clear that if the country is to become the creative hub for the region, it must be able to protect intellectual

property, and so the Ministry of Economy has taken a tough stance on protecting copyright. In October, a

gang that illegally imported and sold thousands of DVDs was jailed in a landmark sentence, following raids

on a Dubai warehouse by undercover police officers working with the Arabian Anti-Piracy Alliance, which

campaigns against the violation of intellectual property rights. The UAE has also been the birthplace of the

Middle East’s legal downloading culture, as Nokia opened its first Nokia Music Store in the region in the UAE

in December 2008, and GETMO Arabia launched the same year.

229 > media

Organisations and AwardsThe Sheikh Zayed Book Award was established in 2007 to reward significant achievements in Arabic culture

and promote interest in Arab literature. In 2009, its top prize of US$367,000 (Dh1 mn) went to Pedro Martinez

Montávez, a professor in Semitic philology at the University of Madrid who has worked to build bridges

between his home country of Spain and the Arab world and has translated the works of many Arabic poets.

In 2009, the Emirates Foundation changed the way it gives its out its grants to focus on three instead of six

main areas: youth development, knowledge creation, and society and heritage (see also chapter on Social

Affairs). From 2005 to 2007 the Foundation awarded 35 grants, rising to 107 in 2008.

The Dubai Press Club, established in 1999 as a centre of journalistic excellence and a forum for journalists to

debate, runs two major initiatives that support the local media industry. The eighth Arab Media Forum, held

in May 2009, brought together more than 600 journalists and keynote speaker Seymour Hersh to discuss

investigative journalism in the region. The club also hosts the Arab Journalism Awards, now in their eighth

year, comprising 12 different categories.

culture

Heritage and Culture are central to national identity and the UAE is making considerable efforts to preserve its traditional culture.

At the same time, the country is undergoing a cultural renaissance with particular

emphasis on investment in world-class resources, introducing international best practices

into all areas of cultural activity, stimulating and encouraging local participation, and at

the same time forging bridges between East and West.

page 6 | uae 2010

232 > UAE 2010

Ministry of Culture InitiativesDuring 2009, several major initiatives were undertaken by the federal Ministry of Culture, Youth and Community

Development, extending not only throughout the country but also overseas.

One such initiative, which ran for several weeks was the Summer in my Country project, which provided

opportunities for young Emiratis to take part in cultural, intellectual, sports and entertainment activities,

also allowing older citizens a chance to take part as mentors, thereby helping to transfer their knowledge

of cultural heritage to the younger generation. Following the success of the programme, plans are being

drawn up to merge it with another project designed to promote knowledge of folklore and traditional arts.

The Ministry also participated in the Sharjah International Book Fair, the oldest and largest in the country, in

its Abu Dhabi counterpart and in the newly-launched Al Ain Book Fair.

Towards the end of the year, the Ministry took the lead in arranging nearly 100 different events and activities,

in both the cities and in smaller towns, to mark the UAE’s thirty-eighth National Day, on 2 December.

Music, dance and theatre were among cultural activities arranged, while several books were also issued,

including a poetry anthology to celebrate the birth of the UAE, another on promoting the revival of

local traditions and another looking at innovations by young Emiratis. The Ministry also launched a new

Scientific Innovation Award during the year, focusing on sport, education, the development of libraries

and the preservation of heritage.

Looking towards the future, the Ministry signed an agreement with the Emirates Writers’ Association to

collaborate in the publishing of works by local writers and poets.

During 2009, the Ministry also organised the seventh annual Borda Award, which celebrates the birth of

the Prophet Mohammed (PBUH) in the field of formal Arabic and local Nabati poetry, traditional and old

calligraphy as well as classical ornamentation. The award is worth a total of Dh 950,000 for the winners and

is intended to encourage poetry, calligraphy and ornamentation locally and internationally.

One major international initiative by the Ministry during the year was the organisation of the UAE’s first pavilion

at the Venice Biennale, one of the top cultural events in Europe, which ran from June to November. 2009 With

Emirates Airline acting as a major sponsor, and with further support from the Emirates Foundation and the

233 > culture

Dubai Culture and Arts Authority (DCAA), the pavilion was called ‘It’s Not You, It’s Me’ and was designed to

offer a playful and provocative look at what has been described as the world’s most prestigious contemporary

art event. This was the first occasion on which a country from the Gulf has taken part in the Biennale.

One feature of the pavilion was the participation of over 60 volunteers from the UAE, an important part of

showcasing new talent from the contemporary art, design and architecture scene in the Emirates.

Other activities overseas included a week-long ‘UAE Cultural Days’ festival in the German capital of Berlin,

during July, to introduce local culture to a European audience, the UAE national folklore troupe proving to

be a particular success. This was followed up by an Emirati-German art exhibition in Hamburg, which was

chosen as the occasion on which to launch another Ministry initiative, the ‘Dialogue of Cultures’ project,

which is designed to bring together people from all cultures to exchange views, with the aim of narrowing

the distance between nations and enhancing better understanding among civilisations.

The Ministry also took part in BookExpo America, the largest publishing event in North America, along

with several other organisations, including the Abu Dhabi Authority for Culture and Heritage (ADACH), the

Mohammed bin Rashid Establishment, the Sharjah Department of Information and Culture, the UAE Writers’

Union, the National Media Council and the Emirates Heritage Club, and in the London Book Fair, the global

marketplace for rights negotiation and the sale and distribution of content across print, audio, TV, film and

digital channels.

Besides initiatives at a federal level, the individual emirates are also showing increasing attention to the

need to promote and to conserve culture and heritage. In particular, the Abu Dhabi 2030 vision seeks to

establish the emirate as a regional centre for culture with a global capital city as its hub.

The following review presents some of the events and developments that took pace during 2009.

MusicADACH was responsible for several important musical events in 2009. The highly successful Abu Dhabi

Classics series celebrated its second season by treating the Emirates Palace audience to the Middle Eastern

debut of the New York Philharmonic with pieces by Beethoven and Mahler, as well as holding a concert

inside the recently renovated Jahili Fort in Al Ain.

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This year, the Classics series invested time and effort into educational programmes, organising concerts for

children, including a show of the Peter and the Wolf fairy tale. ADACH was also the initiator, in May, of the

‘Sounds of Arabia’, a year-long programme of performance focusing on Arabic music.

An offshoot of the globally acclaimed festival of world music (WOMAD) included Abu Dhabi and Al Ain on

the global circuit of cities in which this festival is staged. The three-day event was held in April 2009 with

participants including world renowned artists such as Youssou N’Dour and Jivan Gasparyan.

Popular music events in 2009 included the series of concerts entitled ‘Dubai Sound City’, the first-ever big

music festival in the UAE, while Abu Dhabi-based events presented some of the biggest names in music,

such as Andrea Boccelli, Coldplay and the Killers.

Visual ArtsThe year 2009 commenced with the first-ever Emirati-only exhibition held in Emirates Palace in Abu Dhabi,

entitled ‘Emirati Expressions’. Featuring 87 local artists exhibiting their work together for the first time, the

exhibitors ranged from veteran painters to a new generation of photographers, graphic designers, video

and installation artists.

The ninth Sharjah Biennial opened in March 2009, with two months of art exhibitions and cultural events.

More than 80 artists and performers participated in the biennial, with events taking place across a wide

range of venues including the Sharjah Art Museum, the Heritage Area of Sharjah, Al Qasba, Sharjah National

Theatre, Sharjah Old Port, Calligraphy Museum and The Theatre Association.

The Abu Dhabi Art Fair took place between 19–22 November, organised by Tourism Development &

Investment Company (TDIC) and ADACH. A number of exhibitions, talks, workshops and book signings

were held in collaboration with partners, including the Soloman R. Guggenheim Foundation, the Louvre,

New York University Abu Dhabi and Paris-Sorbonne University Abu Dhabi. In addition, 50 masterpieces from

the Solomon R Guggenheim Museum in New York were displayed in a unique exhibition at Emirates Palace,

showing from 17 November and continuing to 4 February 2010. The exhibition, organised in collaboration

with TDIC, is another step in the preparations of audiences for the upcoming Saadiyat Island development

of world class museums and art pavilions.

236 > UAE 2010236 > UAE 2010236 > UAE 2010

Another contemporary art festival, Art Dubai, took place in March 2009, attracting an audience of over 14,000

visitors from across the Middle East, South Asia and beyond, including leading curators, museum directors,

artists, 80 museum groups and over 300 international press.

In April 2010 Ra’s al-Khaimah hosts a unique contemporary art competition for local artists on the theme

‘Tracking the Emirates’. Organised by RAK Hospital and partner organisation Swiss Art Gate UAE, the project

aims to support and strengthen the local and regional art scene with an exhibition of the works of up to

15 visual artists.

On a smaller scale, the UAE’s growing number of vibrant galleries continued with exciting and challenging

exhibitions in 2009. Some of the highlights included Ghaf Gallery in Abu Dhabi, which organised the

third photojournalism exhibition, and Meem Gallery in Dubai, which brought together two of the most

influential veterans of the Iranian art scene – the sculptures of Parviz Tanavoli and photography by the

award winning film director Abbas Kiarostami. Tashkeel studios continued supporting and exhibiting

young and emerging artists of UAE, while Traffic Gallery’s founder and owner Rami Farook has become

the British Council’s International Young Design Entrepreneur (IYDE) 2009. In the climate of thriving new

237 > culture237 > culture237 > culture

talents and projects, the UAE’s oldest gallery in Bastakiya area of Dubai – the Majlis Gallery –celebrated its

twentieth birthday.

MuseumsThe development of museums and art pavilions in Abu Dhabi’s Saadiyat Island is continuing at full speed. The

Culture District is the first of the island’s seven developments that will feature the Guggenheim and Louvre

museums, as well as the Sheikh Zayed National and Maritime museums, designed by the world’s leading

architectural figures. The island saw its first exhibition ‘Art Cars Expo’ in October 2009 in a temporary venue.

The already well-established Sharjah Museums Department, which oversees seventeen museums and cultural

institutions, continued an active programme of work in 2009. The Sharjah Art Museum in conjunction with

TATE Britain and the British Council held ‘The Lure of the East: British Orientalist Painting’ exhibition early in

2009, while the Sharjah Museum of Islamic Civilisation organised ‘My Father’s House: The Architecture of

Cultural Heritage in December 2009’, with photographic works inspired by storytelling, domestic life, changing

landscapes, and archaeology and restoration. The Department also organised many other exhibitions and

events such as summer camps and talks throughout the year.

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The United Nations Education Science and Culture Organisation (UNESCO) held a conference for the

Safeguarding of Intangible Cultural Heritage in Abu Dhabi in September. Representatives of 114 countries met

to decide on inscriptions for the list of intangible heritage. The UAE was among 12 nations to put forward the

sport of falconry for consideration in the list. The UAE was also one of a dozen nations elected to a four-year

term on the United Nations Educational, Scientific and Cultural Organisation’s World Heritage Committee.

The Emirates Palace in Abu Dhabi was also a site of a huge ADACH-organised exhibition entitled ‘Islam: Faith

and Worship’. The objects displayed included treasures from the Ottoman Empire. Many of the artefacts on

show had never before been allowed to leave their museums in Istanbul and, indeed, have rarely been on

public display at all.

Literature and Poetry2009 was a very vibrant year in the field of literature and poetry, particularly the latter, which has a long

tradition in the region.

The Poetry Academy (part of ADACH) signed a deal with the family of the Emirati poet Hamad Khalifa Bou

Shihab for publication all of his works, while ADACH’s Kalima initiative is translating more than 100 works of

classic and contemporary titles into Arabic annually in accordance with its founding mission.

The meeting of classical Arabic poetry and media continued through the regionally highly successful television

shows – Million’s Poet and The Prince of Poets – broadcast on Abu Dhabi TV and poetry TV channels. The Prince

of Poets also won the International Broadcasting Award in London for the specialist genre TV category.

Another exciting development was the publication of the English translation of UAE national author Maha

Gargash’s Sand Fish: A Novel from Dubai. Maha Gargash’s book about a woman’s life and loves in the UAE of

the 1950s and 1960s was published by the prestigious HarperCollins in the United States.

FilmBesides the annual Middle Eastern International Film Festival and the Dubai Film Festival (see chapter on

Media), other developments in this cultural medium included the production of a 60-minute documentary

Changing Sands by Pyramedia in Abu Dhabi. The film explores Abu Dhabi’s development through the eyes of

Wilfred Thesiger and his two bedouin guides Salim bin Kabina and Salim bin Ghubaisha; the former is still alive.

239 > culture

The field of documentaries was further enhanced by the second running of Documentary Voices: Social

Awareness Film Festival held in Dubai in November 2009. This initiative is a cutting-edge programme of

documentary screenings and workshops designed to develop and empower film-makers, highlighting

perspectives on culture, society and community development.

TheatreThe hugely popular Freej cartoon characters, the creation of Mohammed Saeed Harib, made their stage

debut in a fantastical new play called Freej Folklore held in January in Madinat Jumeirah. The show, the

biggest Arabic stage performance set so far, included live music, dance and animation, bringing the famous

characters of Freej to real life.

A more classical performance was held in Al Ain’s Al Jahili fort with a mostly Arab cast performing the tale of

Richard III set in the contemporary Arabian Gulf. The Arabic reworking of Shakespeare’s piece was adapted

by the Kuwaiti-British dramatist Sulayman Al Bassam and performed in March 2009.

Other Cultural EventsThe latest Festival of Thinkers was held in Abu Dhabi in November 2009. Organised by the Higher Colleges

of Technology, the conference aims to foster and celebrate thinking, inspiring youth of the region and

allowing renowned intellects from around the world to come and deliver lectures and develop ideas. This

year’s participants included several Nobel Prize laureates, such as Dr Shirin Ebadi, Professor John Nash and

Dr Rajenda Pachauri, and many other figures from the fields of politics, science, economics and arts.

The Abu Dhabi Formula One Grand Prix weekend, one of the greatest events on the 2009 calendar, was

accompanied by a number of cultural events on Abu Dhabi’s Corniche as well as Yas Island. These included

the Arabic Culture weekend, free screenings of films on the beach, a Brazilian party procession and a number

of free concerts of local and international music acts. The Yasalam entertainment programme also included

concerts by Beyonce, Aerosmith and the Kings of Leon. A number of local artists were also engaged in

the live art creations of customised Formula One replica cars across Abu Dhabi. The artists included Wasel

Safwan, Jalal Luqman, Dana Saif Al Mazrouei, Khalid Mezaina and the Mizmah collective of young female

artists from Zayed University.

environmentThe conservation and protection of the environment of the United Arab Emirates, including the fauna and flora that are to be found within it, is perhaps one of the most complex tasks that the country currently faces.

The high temperatures and low rainfall that are responsible for its highly arid desert environment have

meant that the native fauna and flora have had to adapt in a variety of ways to be able to survive.

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242 > UAE 2010242 > UAE 2010

Any minor changes in climatic conditions could have a seriously damaging effect upon the UAE’s biodiversity.

Moreover, the lengthy coastline, in particular along the country’s Arabian Gulf coast, is low-lying, much of

it being immediately supra-tidal salt-flats. Even a small rise in sea level, prompted by the melting of the

polar icecaps as a result of global warming, could have a devastating effect in the coastal zone, in which

the overwhelming majority of the country’s inhabitants live and where much of planned development is

due to take place. Indeed, scientific studies are detecting signs that sea level in the Gulf may have already

started to rise.

A further aspect of the complexity of environmental protection is the challenge posed by the country’s

rapid economic growth. The population has grown from around 180,000 in 1968, just over 40 years ago,

to around five million today. As a result, the amount of land being used for residential, commercial and

industrial use has grown dramatically. The extension of the infrastructure, in the form of airports, ports and

highways, has taken further toll on what was formerly natural habitat, while quarrying stone for construction

has had a significant impact on much of the Hajar Mountains.

243 > environment243 > environment

In the coastal zone, the demand for new residential communities has meant that land has been reclaimed

from the sea, once undisturbed islands are being developed and areas of salt-flats once subject to

occasional inundation have been back-filled, with large urban communities being constructed. As a result,

the UAE coastline is already significantly different from what it was a few decades ago. This process is not

something new: a pattern of evolving shorelines can be traced back over thousands of years. What is

new, however, is the pace of the change. Not only is an ever-larger part of the country’s area affected by

human development, but the rate of change is such that there is little time for species of flora and fauna

to adapt or to move. Indeed, in many areas, insufficient research has been undertaken on what forms of

life are actually present.

Towards a Sustainable BalanceThe challenge to conserve the environment, however, has been accepted by Government as a major priority,

with the ultimate objective being to reach a sustainable balance between environmental protection and

the needs of development.

244 > UAE 2010

Any minor

changes in climatic

conditions could

have a seriously

damaging effect

upon the UAE’s

biodiversity.

245 > environment

The federal Ministry of Environment and Water, along with local agencies, of which the most active is the

Environment Agency – Abu Dhabi (EAD), responsible for nearly four-fifths of the UAE’s land area, have

continued to work on proactive programmes of scientific research and the preparation and implementation

of ever-tougher regulations and guidelines. Educational campaigns have been designed with the help of

non-governmental organisations such as the Emirates Wildlife Society (EWS) to raise public awareness of

the need to protect the environment and to reduce consumption of energy and water.

At the same time, new areas of natural habitat have been given protection. In Abu Dhabi, for example, the

Yasat Marine Protected Area, managed by EAD, has been enlarged to include several more islands, and now

covers an area of nearly 3000 square kilometres. Nearly 20 per cent of the UAE’s population of dugongs, an

endangered marine mammal, live in the area. The Al Gharbia 2030 Plan, part of Abu Dhabi’s vision for the

future, includes several thousand square kilometres of desert as proposed nature reserves, where any future

development will be tightly controlled.

Another important step, following extensive study by the EWS and the Fujairah Municipality was the

declaration of the country’s first mountain reserve. Covering over 220 square kilometres including a large

buffer zone, the Wadi Wurrayah Reserve is home to the endangered Arabian tahr, a distant relative of the

goat, that is threatened with extinction in the UAE. The reserve is also home to a wide range of other fauna

and flora, and, during studies leading up to the declaration of the reserve, a number of previously unknown

invertebrate species were discovered.

Meeting ChallengesIn the UAE’s arid climate, one of the most pressing tasks is to conserve the limited supplies of fresh water.

Although most fresh water is now provided from seawater, through desalination and power plants (see

chapter on Water and Electricity), the exploitation of underground aquifers, particularly for agriculture, far

exceeds any recharge that may occur as a result of scanty annual rainfall.

In order to ensure that a coherent, all-embracing policy on water usage is developed, a Permanent Committee

for Agriculture and Water Resources was established in Abu Dhabi in late 2009. Among its tasks are the

preparation of an inventory of all water resources in the emirate, including groundwater, desalinated water

and wastewater, and an assessment of future needs. It will also seek to maximise efficiency of water usage,

so as to control the expansion of demand and will look at ways in which renewable energy resources can

be used in the production of water.

246 > UAE 2010

Another resource that is being over-exploited is that of the country’s fish stocks. Recent surveys undertaken

on behalf of EAD have shown that populations of most of the commercially important species have declined

dramatically in recent years. Although tough legislation has been enacted, implementation has posed

a challenge and inspections of fishing operations at sea are to be increased. One concern is that too many

fish are being caught before they reach the age of maturity.

One step that can be taken is to reduce the number of fishing boats. A moratorium on new fishing licences

was imposed in Abu Dhabi in 2002 and, partly as a result, the number of fishing trips fell from 7300 in 2004

to 5900 in 2008. In Dubai, fishing boat owners who are too old to go to sea themselves are now able to

benefit from a government scheme that pays them a salary related to the number of boats that they own,

which can then be taken out of service.

Another major concern, not simply in terms of its impact on the environment but also because of the

effect it has on neighbouring villages, is the country’s quarrying and rock-crushing industry. The rock itself

is needed for the continuing construction programme, but the Government is determined to ensure that

the industry is forced to adhere to international standards in terms of pollution. A series of tough new

regulations were endorsed by the Cabinet in 2008 and during 2009, the Ministry of Environment and

Water, working with the environmental authorities in Ra’s al-Khaimah and Fujairah, where most quarrying

operations are located, undertook a campaign to enforce higher standards. Whereas in January 2009,

only 63 per cent of the quarries and crushers in Ra’s al-Khaimah were adhering to the new guidelines,

the figure had risen to 97 per cent by August. Thirteen crushers were closed for failing to improve their

performance. The Ministry also began evaluation of cement and clinker factories, and had completed a

set of preliminary guidelines by the end of the year. When implemented, they are expected to reduce

emissions by up to 60 per cent.

Despite the pressure on the UAE’s environment from development, there are encouraging signs that the

country continues to be attractive to wildlife. In spring 2009, a major new breeding colony of greater flamingos

was found close to Abu Dhabi’s Musaffah industrial zone. Containing nearly 2000 nests, and with up to18,000

birds present, the colony is the largest ever recorded on the Arabian Peninsula, and was afforded immediate

protection. Satellite tracking has shown that birds from the area migrate as far away as the Caspian Sea,

underlining the necessity for conservation to adopt an international, as well as a local approach.

Right: Above average rainfall in 2009 helped to fill the underground aquifers that supply water to agricultural areas.

249 > environment

The United Arab Emirates has worked for many years with other countries on the basis of bilateral agreements

to protect particular species, such as the houbara bustard, which breeds in Central Asia but migrates to the

Arabian Gulf. Following a conference in late 2008 held in Abu Dhabi, and organised by EAD in association

with Britain’s Department of Food, Rural Affairs and Agriculture and the Convention on Migratory Species,

part of the United Nations Environment Programme, the UAE has now been chosen as the headquarters

for a new international agreement on the conservation and protection of migratory species of birds of prey

throughout Europe, Africa and Asia.

Nature’s SurprisesAmidst a year of effort designed to conserve and protect the UAE’s environment, the vagaries of the global

climate also affected the country. As a result of good rainfall in March, an estimated 5.76 million cubic metres

of water were trapped in dams in mountain areas, while December also saw heavy rainfall throughout

much of the Emirates, providing a much-welcomed boost to agriculture and also recharging underground

aquifers, which are being rapidly depleted as a result of rising demand for water.

While the UAE usually receives some rainfall in most years, a fall of snow in late January on Jebel Jais in

northern Ra’s al-Khaimah, the country’s highest mountain, was utterly unexpected. The snow covered an

area of around 5 square kilometres to a depth of around 10 centimetres. Snow had only fallen once before

in the memory of local residents, again on Jebel Jais, in 2004, although this year’s snowfall, accompanied

by heavy rain in low-lying areas, was much heavier. Snow is so unusual in the Emirates that there is no word

for it in the local dialect.

Another, less welcome, natural event was a major outbreak of ‘red tide’ in the northern emirates of Umm

al-Qaiwain and Ra’s al-Khaimah and on the UAE’s east coast during the summer. Correctly known as harmful

algal blooms (HABs), these involve toxic or otherwise harmful phytoplankton and can cause severe mortality

among fish stocks. The outbreak lasted for several weeks, causing severe disruption to fisheries.

Left: The fragile arid environment of the UAE poses a challenge to even the most adaptable of flora and fauna.

exhibitionsThe conference and exhibition sector is a significant contributor to the economy of the UAE and a major strand in the UAE’s strategy for continued development.

In addition to providing a platform for the direct promotion of trade, MICE

(meetings, incentive, conferences and exhibitions) fosters economic

diversity, boosts development, encourages business relationships

and contributes significantly to the image of the country

worldwide.

page 6 | uae 2010

Strategically, the UAE, at the crossroads of Europe, Asia and Africa, is uniquely positioned to capitalise on

this sector and has built large state-of-the art exhibition and conference facilities with accompanying luxury

hotels to cater to the needs of visitors and exhibitors.

Recent estimates indicate that 65 per cent of the total exhibition space currently available in the GCC is

situated in the UAE. When the country’s sophisticated infrastructure, strong economy, secure hospitable

environment and diverse leisure opportunities are taken into consideration, it is no surprise that the UAE

attracts world-class exhibitions and events on a regular basis.

Abu Dhabi National Exhibition CentreIn 2009 the Abu Dhabi Tourism Authority (ADTA) launched the Advantage Abu Dhabi initiative with a view

to promoting its MICE industry. This offers business event organisers funding and non-financial government

support to bring their shows to the capital. Abu Dhabi’s impressive new high-tech exhibition centre features

strongly in this initiative as does the Emirates Palace Hotel, the super-luxurious, seven-star venue where

many major conventions, conferences and concerts are staged.

The Abu Dhabi National Exhibitions Centre (ADNEC) has 73,000 square metres of live event space. It stages

over 100 live events every year and welcomes over 1.8 million people annually. ADNEC continues to upgrade

its facilities and in 2009, it completed the transformation of its largest exhibition hall, the 7920-square-

metre multipurpose Hall 12, into an indoor auditorium capable of seating up to 5700 spectators, significantly

expanding the scope of the live events that ADNEC are capable of staging. The year 2009 also saw completion

of the first phase of the Exhibition Centre marina development in time for the prestigious Abu Dhabi Yacht

Show (see below).

Surrounding ADNEC is the Dh8 billion (US$2.18 bn) Capital Centre development, a fully integrated community

project that is considered to be a major strategic element of Abu Dhabi’s 2030 vision. Capital Centre will

house a new business and residential micro-city of 23 towers, including seven hotels. On completion in early

2011, Capital Centre will also feature Capital Gate, a 35-storey signature tower, the 2.3 kilometre waterfront

Marina Zone; the ‘Galleria’, a shopping mall with restaurants, retail outlets, and cinemas; and its own monorail.

ADNEC also benefits from its relationship with its subsidiary, the Abu Dhabi National Exhibition Company-

owned ExCeL London, which it purchased in 2008. ExCel was named as London’s ‘Business Venue of the

252 > UAE 2010Right: IDEX acts as a gateway for defence manufacturers

and suppliers to secure contracts in the region.

Year’ for the second year running at the Visit London 2009 awards, just one of the many major industry

awards acquired by ADNEC. Some of the Gulf’s largest and most significant international exhibitions are

held at ADNEC in Abu Dhabi, including those outlined below.

ADIPECAbu Dhabi International Petroleum Exhibition and Conference (ADIPEC), is a four-day biennial oil and gas

exhibition. ADNEC’s facilities have facilitated the exponential growth of the exhibition, with 1500 exhibiting

companies and 37,000 industry personnel attending the 2008 event. Key attendees, including the British

Prime Minister, regional ministers from throughout the Middle East region, other VIPS and dignitaries,

came from 89 countries. The conference programme brought together a host of industry executives and

academics, and focused on some of the important issues facing the industry. A number of companies

254 > UAE 2010254 > UAE 2010

announced high level deals during the course of the event. The next ADIPEC will take place from 1 to 4

November 2010.

Environment 2009The fifth edition of the Environment Exhibition and Conference was held at ADNEC from 19 to 21 January

2009, featuring 256 exhibitors from 28 countries and showcasing a range of water, waste and air quality

management solutions. Organised in conjunction with the Environment Agency – Abu Dhabi (EAD),

Environment 2009 had an exhibitor profile that included pollution treatment and recycling, energy, protection

of natural and cultural resources, risk prevention and management, sustainable development, regulation, audit

and consultancy, and training and education, among other areas. A conference on ‘Sustainable Management

for Coastal Zones’ was also held in conjunction with the exhibition.

255 > exhibitions255 > exhibitions

Future EnergyAs the world’s fifth largest oil producer, Abu Dhabi takes the lead in addressing global energy concerns

by hosting the World Future Energy Summit (WFES), the inaugural event of which was held from 19 to

21 January 2009. The summit is a part of a major initiative to bring together the world’s leading experts,

innovators, scientists, and venture capitalists in the field of future energy under one umbrella. In addition,

the conference explores the future of the energy industry, including alternative energy, in the Middle East.

WFES 2009 hosted world-renowned speakers including ministers, politicians, business leaders, environmentalists

and experts in clean energy. In addition, 12 national country pavilions and 300 leading international exhibitors

from energy, finance, green construction, government and environment sectors showcased the present and

future state of alternative energy technologies. WFES 2010 was held from 18 to 21 January 2010.

IDEXOfficially supported by the UAE Government and coordinated with the active assistance of the UAE Armed

Forces, IDEX 2009, held from 22 to 26 February, was the ninth edition of the Middle East’s biennial premier

defence exhibition and conference. IDEX provides a venue for the defence industry to display new technologies

and equipment to prospective buyers from the growing defence markets in the Middle East, Asia and Far

East. Total deals signed during the five-day event exceeded Dh18 billion.

A record-breaking 897 companies from 50 countries and over 150 official delegations from around the

world attended the exhibition, which spread over 108,000 gross square metres. In 2011 IDEX will again act

as a gateway for manufacturers and suppliers to secure contracts within the region.

ADIHEXLaunched in 2003, the International Hunting and Equestrian Exhibition (ADIHEX) is a fast-growing annual

event that has rapidly gained international recognition and widespread popularity. The show is dedicated

to encouraging, protecting and safeguarding many of the traditional values of the Emirates as reflected in

the activities that dominated life in the region: horsemanship, falconry, hunting, fishing, and the arts and

crafts that support and revolve around them.

The show features camel and horse auctions, saluki beauty contests, art competitions and traditional hunting

activities. Visitors can purchase the latest camping, hunting, and equestrian equipment; as well as enjoy a

257 > exhibitionsLeft: The World Future Energy Summit addresses global energy concerns.

designated heritage area dedicated to the deep-rooted traditions of Abu Dhabi and the UAE. A key focus

of the event is the protection of endangered wild falcons.

ADIHEX is organised by the Emirates Falconers’ Club supported by the Abu Dhabi Authority for Culture

and Heritage (ADACH) and the breeding stables of Sheikh Mansour bin Zayed Al Nahyan, amongst others.

In 2009, 573 companies from 37 countries participated in the event, which ran from 30 September to 3

October 2009. Military links between the UAE and the UK, as well as the nations’ mutual love of horses, was

celebrated with the first performance outside Europe of the British Household Cavalry’s Musical Ride.

Yacht ShowAbu Dhabi Yacht Show (ADYS) was launched in 2009 by ADNEC at their new marina facility to meet the

needs of the Middle East yachting market. The inaugural event reported sales totalling US$200 million (Dh735

mn), confirming the growing importance of Abu Dhabi as a leading super and mega-yacht destination, and

establishing ADYS as the place to view many of the world’s most exclusive boats. The show is organised by

Informa Yacht Group (IYG) whose portfolio includes running the Monaco Yacht Show and The Super Yacht

Cup. The second edition will be held from 25 to 27 February 2010, featuring more exhibition space and

format changes designed to showcase new models.

Other Exhibitions at ADNECOther significant exhibitions include MECOM 2009, Middle East International Communications Exhibition

and Conference; GASTECH 2009, the leading conference and exhibition for the natural gas, LNG and LPG

Industries; Abu Dhabi Medical Congress 2009; Power Generation and Water Middle East 2009; Cityscape, the

international property investment and development event; International Jewellery and Watch Exhibition

Abu Dhabi 2009; and the Abu Dhabi International Book Fair. For a full list of exhibitions, conferences and

events visit http://www.adnec.ae./

Dubai World Trade CentreDubai World Trade Centre (DWTC) experienced a 10 per cent increase in visitor volumes for exhibitions,

conventions and conferences at its venues in 2008, with many leading shows across a range of sectors

showing strong growth in the number of exhibitors and visitors.

The DWTC venues, Dubai International Convention and Exhibition Centre (DICEC) and Airport Expo Dubai,

welcomed a total of approximately 1.1 million visitors at exhibitions, meetings, and conferences in 2008, driven

258 > UAE 2010

by record growth in leading shows across a number of sectors that are core for the strategic development of

the region, ranging from health care and construction, to travel and technology.

DWTC continues to provide enabling infrastructure to support growth in the regional MICE sector, a constant

and reliable revenue source for Dubai’s hotel industry. The new Sheikh Saeed Halls at DWTC comprise four

inter-connected halls, including the multipurpose Trade Centre Arena. This Arena, with 14-metre-high ceilings

and over 9000 square metres of covered exhibition space, has the capacity to host conventions, concerts

and other events for over 10,000 guests in an air-conditioned, all-weather environment.

A record number of 21,823 companies from more than 80 countries exhibited in the 55 exhibitions that

were hosted or organised by DWTC during the first half of 2009. The number of exhibitors was up more

than 7 per cent on the same period in 2008. The number of visitors rose fractionally to 551,938 in the first

half of the year from 551,056 visitors in the same period in 2008.

Year after year, DWTC’s success as an organiser is also evident as it successfully stages a range of important

exhibitions and events.

GITEXGITEX Technology Week focuses on the region’s high-growth ICT and telecommunications sector. More than

3000 companies participated in the 2009 edition of the annual show, which ran from 18 to 22 October in

the new Sheikh Saeed Halls. The GITEX Technology Week Global Conference attracted senior executives

from some of the Middle East’s business and government organisations, as well as developers from the

world’s leading IT companies. Microsoft launched Windows 7 PC in collaboration with HP, a week before

the global launch, highlighting the importance of GITEX.

Dubai AirshowRunning from 15 to 19 November 2009 at the Dubai Airport Expo, the biennial Dubai Airshow is the foremost

aerospace event in the Middle East and one of the three largest aerospace exhibitions in the world. The

eleventh edition included displays of some of the best in military and commercial aircrafts, cargo planes,

private executive jets, helicopters, and drones, including spare parts, maintenance, airport security, and

engines. A total of 890 companies from 47 nations participated in the event, which also included enthralling

aerial displays conducted daily throughout the airshow. The total value of deals signed during the five-day

event was in the region of US$14 billion.

259 > exhibitions

GETEX The twenty-first edition of GETEX Dubai, the Middle East’s leading education fair, took place at DICEC from

15 to 18 April 2009. This is one of the most important education-oriented exhibitions in the region and an

ideal networking platform for international academic institutes and authorities specialising in the field of

education and scientific research. GETEX also hosted the 2009 Global Forum on Technology and Innovation

in Teaching and Leading, as well as the 2009 HRD and Training Conference.

Arab HealthThe four-day Arab Health exhibition, which ran from 26 January to 29 January 2009, brought together

manufacturers and distributors actively seeking local and regional partners to win a share of the annual

market in a healthcare sector expected to continue growing at 16 per cent a year. More than 2000 exhibitors

and 5000 delegates attended DICEC for the exhibition.

Arabian Travel MarketA stronger-than-expected exhibitor presence from a global travel and tourism industry beset by economic

turmoil was evident at the sixteenth Arabian Travel Market (ATM), which was held at DICEC from 5 to 8 May

2009. The presence of 2100 exhibitors was a marginal reduction on the 2008 edition, which had broken all

previous records. The show, billed as the region’s premier travel and tourism showcase, brought together

national tourism bodies representing six continents, including new-to-market showings from the Philippines,

Vietnam, Cambodia, Romania and Nigeria as well as representation from the private sector in Ecuador,

Slovenia and San Marino.

Other Exhibitions at DICECNobel Peace Prize Winners Al Gore and Desmond Tutu were the key speakers at Leaders in Dubai Business

Forum 2009, which was held at DICEC from 26 to 28 October. Former US Vice-President Gore, who served

under President Clinton for eight years, headed a list of top speakers at this year’s forum under the title, ‘A

New Beginning’.

Other important exhibitions held at DICEC include CABSAT, Middle East International Motor Show, Dubai

International Arabian Horse Championships, Arab Health, DUPHAT International Pharmaceuticals Conference

and Exhibition. For a full list visit www.dicec.ae

261 > exhibitionsLeft: The biennial Dubai Airshow is the foremost aerospace event in the Middle East.

Expo Centre Sharjah Sharjah pioneered the region’s exhibition industry in 1977 when it opened an exhibition complex in

the emirate. Twenty-five years later, with an investment of Dh183.5 million (US$50 mn), the Expo Centre

Sharjah was inaugurated as the centrepiece of a larger Expo City. With 128,000 square metres of floor

space managed by Sharjah Chamber of Commerce and Industry (SCCI), the Expo Centre hosts regular

specialised trade fairs.

These include Steelfab, Middle East’s largest trade show for the metal working, metal manufacturing and

steel fabrication industry; the National Careers Exhibition, aimed at UAE nationals in the banking and finance

sectors; the biannual Mideast Watch and Jewellery Spring and Autumn Shows; the Sharjah World Book Fair,

a longstanding international book fair organised by the emirate’s Department of Culture & Information;

Chinese Commodities Fair, presenting the Middle East’s largest trade platform for high quality Chinese

products and services; Sharjah Education Show; and Conmex, the Middle East’s exclusive trade show for

machinery, equipment and vehicles used in the construction industry.

Expo Centre Sharjah is bordered by Al Khalid Lagoon, making it an attractive option for marine events such as

the highly successful Gulf Maritime Exhibition. In 2009, Expo Centre Sharjah was granted membership of UFI,

the global association of the exhibition industry. For a full list of exhibitions visit http://www.expo-centre.ae/

Ra’s al-Khaimah Ra’s al-Khaimah has a 37,400-square-metre exhibition complex close to the active business centre of the city.

Formally inaugurated in 1996, and supported by the Ra’s al-Khaimah Chamber of Commerce and Industry,

its calendar includes Services and Recruitment Fair, RAK Book Fair, Arabic Trading Fair, African and Asian Fair,

and Ramadan Festival. Visit http://www.rakexpo.ae/ a full list of events.

In an effort to increase foreign investment into the emirate, as well as boost tourism and trade, Ra’s al-

Khaimah investment company, Rakeen, unveiled plans for a Dh1.46 billion (US$400 mn) RAK Convention &

Exhibition Centre in 2008. The innovative building will have a superior high-tech finish, using technologically

advanced ceramics that have been developed by RAK Ceramics. The structure of the new exhibition centre

is designed to merge with its surroundings, maintaining the majestic beauty of the sand dunes.

262 > UAE 2010

Fujairah The Fujairah Exhibition Centre (FEC) on the east coast covers 1080 square metres of indoor floor space,

an outdoor display area, exhibition halls, management offices and service utilities. It is centrally located

between both the international airport and Fujairah Trade Centre on one side and the seaport and free

zone on the other. Established by the Fujairah Chamber of Commerce, Industry and Agriculture, a number

of internationally important exhibitions have been held at the centre since its establishment. These include

Buildex, a specialised crusher and building equipment show; the Motor Show, the Fujairah International

Agricultural Exhibition, Fujairah International Education and Training Exhibition and the Syrian Products Show.

FEC also hosts seasonal fairs for the general public. Visit http://www.fujairahexhibitioncenter.com/ for a full

list of events.

263 > exhibitions263 > exhibitions

Expo 2010

The UAE is participating at the 2010 World Exposition (Expo 2010), to be held in Shanghai from

1 May to 31 October 2010, with a pavilion on a 6000-square-metre plot, the largest available

to country exhibitors. The general theme of Expo 2010, at which over 200 countries and

institutions are exhibiting, is ‘Better City, Better Life’, a theme that resonates with the UAE’s

development history.

Inspired by one of the country’s most evocative natural landscapes, the precipitous sand-dunes

of the UAE’s legendary deserts, the UAE’s Expo 2010 pavilion is a triumph of form and function,

blending nature and architecture to create a fascinating structure that commands attention and

reinforces the Expo 2010 theme. The building’s strong appeal lies not just in its unusual organic

form, but also in the reflective nature of its outer covering, helping to recreate the changing

patterns and colours of the UAE’s natural and urban environments. Designed by Foster + Partners,

one of the world’s leading architectural teams, the building will be a truly recyclable pavilion.

Following completion of Expo 2010 it will be dismantled and moved to a more permanent

location in the UAE, thus gaining maximum value from the extensive planning, design and

construction that is involved in Expo participation.

The UAE has chosen ‘The Power of Dreams’ as the central thread of its participation in Expo 2010.

The exhibitions within the pavilion expand on this unifying concept to show how the UAE has

harnessed its dreams of a better life and applied imaginative thinking to lead the twenty-first

century urban agenda. Exploration of the theme in the historical, social and contemporary

contexts focuses on how economic prosperity, assisted by innovations in science and technology,

264 > UAE 2010

transformed the UAE from a rural society to thriving urbanised communities where over 200

diverse cultures live and work in harmony. The five sub-themes of Expo 2010 are addressed and

reflected throughout the exhibition, with particular focus on key concepts such as growth and

sustainability, community and connectivity, culture and diversity, concepts that are central to

UAE aspirations for better city-living.

The exhibition is in five stages. Firstly, in the queue line, visitors are presented with displays

that provide information about the pavilion itself and about the exhibits. Secondly, twin theatres

present a six-minute widescreen film entitled ‘In the Blink of an Eye’ that focuses on the extreme

contrasts between the UAE in 1971 (at its formation) and today when standards of living and

urban environments are among the best in the world. Next, visitors enter a specially created

urban ‘environment’ where they ‘meet’ Emiratis and learn about their diverse lives. The founding

father of the UAE, Sheikh Zayed, used to say that wealth is measured in people, not money or

buildings, and this section will show the true wealth of the country.

After coming face to face with Emiratis in a six-minute experience, visitors enter into the spacious

volume of the large ‘dune’ and here they are taken on a virtual journey through the UAE, as

they follow two young people with magical powers. There is no better way to gain a bird’s eye

overview of the incredible places and experiences that the country offers. Finally visitors pass

through an ‘Information Area’ inside the pavilion and a ‘Cultural Garden’ in its grounds.

The country’s participation at Expo 2010 is being coordinated by the National Media Council.

265 > exhibitions

sportsHigh-profile sporting events are now synonomous with the UAE where sporting venues are among the best in the world.

Combined with a central geographical position, superb

hotels, excellent weather conditions and a secure friendly

environment, the UAE has proven to be the ideal location

for sporting extravaganzas.

page 6 | uae 2010

268 > UAE 2010

But the country is more than a sporting spectators’ paradise: participatory sports are popular throughout

the country, with a special emphasis on football, golf, tennis, watersports and just about anything to do

with cars and horses.

Sports sponsorship is also a major focus of UAE companies and organisations and has proven to be extremely

successful in heightening international awareness of the country.

FootballFootball is immensely popular in the UAE, firmly entrenched in the collective conscience. The pride that was

engendered by the UAE’s hosting of the 2009 edition of the FIFA Club World Cup in December, bringing to

home grounds the glamorous stars of international football, was an apt expression of that passion.

The nation celebrated the arrival of world-class club football at Zayed Sports City Stadium, with the

opportunity to watch sporting idols such as Lionel Messi, Zlatan Ibrahimovic, Juan Sebastian Veron and

Xavi battle it out for their clubs on home soil. As expected, Spanish club FC Barcelona won the 2009

FIFA Club World Cup, 2–1, in overtime against Argentinians Estudiantes de la Plata, Messi scoring the

winning goal and earning himself the Golden Ball award. The UAE will also host the 2010 Club World Cup

in December 2010.

The year brought mixed results for the senior national team as they were unable to repeat their 2007 Gulf

Cup success and failed to qualify for the 2010 World Cup. But their fortunes took an upswing after a change

of coach with Srecko Katanec replacing Dominique Bathenay at the end of the 2010 World Cup qualifying

campaign. The former Slovenia international got off to a good start as his first two games brought a 1–1

draw against Palestine and a 3–1 win over Jordan in friendly matches.

Katanec’s side also went on to surprise English Premier League club Manchester City 1–0 at Zayed Sports City

Stadium, with Hamdan Al Kamali scoring the only goal from a spot kick. A four-nation friendly tournament

followed in Al Ain and the UAE extended their winning streak to four, getting the better of a young Czech

Republic side in a penalty shootout 4–3 before ceding 1–0 to Iraq in the final.

The youth team, champions of Asia, put up an impressive show at the FIFA Under 20 World Cup in Egypt,

where they reached the quarterfinals before losing 1–2 to Costa Rica following an injury-time goal, in the

High-profile sporting events are now synonymous with the UAE where sporting venues are among the best in the world.

270 > UAE 2010

final seconds of extra-time. The national junior team also reached the quarter finals of the FIFA Under-17

World Cup in Nigeria before being knocked out by Turkey on 4 November.

Unfortunately the UAE’s beach soccer team, winners of the Asian Football Confederation’s (AFC) Beach

Soccer Championship games of 2007 and 2008, were unable to emulate their previous successes and failed

to progress beyond the group stages of the 2009 FIFA Beach Soccer World Cup in Dubai.

On the domestic front, the second season of the Pro League attracted even bigger stars with the former AC

Milan and Real Betis forward Ricardo Oliveira moving to Al Jazira for a record €15 million. The Brazilian joined

his former Real Betis and compatriot Rafael Sobis at the Abu Dhabi club. The other high-profile newcomers

include Argentina’s Jose Sand and Marcio Emerson of Brazil, both for Al Ain, and Al Shabab’s new signing

Carlos Villanueva.

The sport received a boost when President H.H. Sheikh Khalifa bin Zayed Al Nahyan gave Dh50 million to

the UAE Football Association to upgrade facilities at amateur football clubs. Further good news comes from

the capital, where a 65,000-seat stadium with a moving roof is being constructed. The venue is set to raise

the bar for future local and international events and it will also be the home of the national team and a

venue for major events.

Motor SportsMotor sports and cars in general engender as much passion as football in the hearts of Emiratis. The UAE

can now boast one of the best venues in the Formula One circuit. Built on Yas Island in Abu Dhabi and

designed by Hermann Tilke, the Yas Marina Circuit stretches 5.5 kilometres and contains 21 corner twists,

snaking through grandstands that can accommodate over 50,000 cheering spectators.

The first Etihad Airways Abu Dhabi Grand Prix and the seventeenth and last race of the season was held

with much fanfare over the weekend of 30 October to 1 November 2009. The Grand Prix, the first day-night

race, was won by the German Sebastian Vettel driving for Red Bull Racing-Renault alongside his Australian

team-mate Mark Webber. The Briton Jenson Button, the world champion, joined them on the podium.

Although Formula One is a newcomer to the UAE motorsports scene, rally-driving has been an extremely

popular sport here for many years, spearheaded by UAE citizen Mohammed bin Sulayem who has made the

Right: Formula One celebrations on the podium at Yas Island Circuit, Abu Dhabi.

273 > sports

transition from competitor to administrator in recent years. President of the Automobile and Touring Club of

the UAE (ATCUAE) and Vice President of the FIA, Mohammed bin Sulayem has 14 Middle East Championship

titles to his credit.

The UAE Desert Challenge, one of the world’s most prestigious international cross-country rallies, entered

a new era in March 2009 when it was renamed the Abu Dhabi Desert Challenge with the five-day motor

sport spectacular being staged in its entirety across Abu Dhabi emirate under the auspices of the Abu

Dhabi Tourism Authority (ADTA). ATCUAE is retaining its role as event organiser. Originally the last round of

both the FIA Cross Country Rally World Cup and the FIM Cross Country Rallies World Championship, the

Desert Challenge is now the season-opening round.

A new international motorsports fixture – Rally Abu Dhabi – will debut in the emirate in 2010 as a World

Rally Championship (WRC) event with the aim of becoming an official WRC event in 2011, subject to the

inaugural rally’s success.

The Dubai International Rally, the final round of the FIA Middle East Rally Championship, and a round that

decides the champion for the year, has been staged in Dubai in December since the mid 1980s.

In the international motorsport arena, the 2009 FIA World Rally Championship saw ADTA-sponsored Team

Abu Dhabi perform to the best of their abilities throughout each of the fifteen stages of the race, with

the final phase culminating within the dense forests of the Welsh countryside. The BP Ford Abu Dhabi’s

Mikko Hirvonen finished second behind the six-time world champion Sebastien Loeb of Citroen. Also

representing the UAE was Sheikh Khalid Al Qasimi, who ascended 34 places in the event’s last two days to

finish twentieth overall; BP Ford Abu Dhabi’s second driver Jari-Matti Latvala finished seventh.

TennisBriton Andy Murray claimed the title in an electrifying two-hour 45 minutes final against world number

one Rafael Nadal in the inaugural Capitala World Tennis Championship staged in Abu Dhabi in January

2009. Held over three days, the tournament saw six of the world’s top-ranked players vying for the prize of

US$250,000 in a winner-takes-all scenario before a crowd of 5000 at Zayed Sports City Stadium, as well as a

worldwide television audience. The success of the 2009 event has established the capital city as host of one

of 2010’s most anticipated events on the tennis calendar.

Left: Andy Murray winning the Capitala World Tennis Championship in Abu Dhabi.

274 > UAE 2010

The 2009 Dubai World Tennis Championships also witnessed some of the most exciting matches of the

season. Novak Djokovic triumphed over David Ferrer to clinch the title in the men’s singles while the American

Venus Williams defeated Virginie Razzano in the women’s event.

The staging of major international sporting events not only brings visitors to the country, it also serves to

stimulate local sporting enthusiasts and inspire them to greater efforts. In this context, the local tennis scene

is undergoing a major overhaul under the auspices of Tennis Emirates, the body responsible for promoting

local players. This includes the affiliation of all tennis academies in the country with Tennis Emirates in order

to standardise training methods. A ranking system will be introduced, replacing the system started in 2007,

along with more grassroots schemes for young players, including the creation of national junior training

centres in each of the seven emirates. The scheduled season has also undergone changes and will now run

from October to September.

The International Tennis Federation’s (ITF) ‘Play and Stay’ scheme will be employed to encourage new players

into the sport as well. These strategies have been developed in consultation with the National Olympic

275 > sports

Committee in order to produce players capable of competing in international events such as the Olympic

Games and the Davis Cup. In recent times, the UAE narrowly missed out on a Group Three entry of the Asia/

Oceania Zone of the Davis Cup in Dhaka, Bangladesh. The team included 16-year-old Rashed Al Falasi who

was part of the winning doubles team.

Tennis Emirates has also entered into a cooperation agreement with the Spanish Tennis Federation, producers

of some of the world’s top seeded players. The UAE national team players will now be able to practice at the

Madrid Tennis Federation’s (MTF) headquarters, also dubbed the ‘Magic Box’, the home of the Madrid Masters.

GolfThe UAE is home to some incredible golf courses and this list is growing with the inauguration in 2009 of

the Greg Norman-designed Earth Course in Dubai and the completion of the Saadiyat course, designed by

Gary Player, in Abu Dhabi. Other popular golfing venues include Abu Dhabi Golf Club, the Dubai Creek Golf

and Yacht Club, the Emirates Golf Club and the Jebel Ali Golf Resort. Many of these world-class golf courses

host major golfing events.

276 > UAE 2010

In December 2009 Lee Westwood from England won the inaugural Dubai World Championship at the

spectacular new Earth Course in Jumeirah, with a course record of 66 and a personal best of 23 under-

par for 72 holes. This marked a major comeback for Westwood, who finished ahead of compatriot Ross

McGowan and 19-year-old Rory McIlroy of Ireland. The Dubai World Championship was the final round

in the season-long ‘Race to Dubai’ in which the top 60 tour players competed for a staggering US$10

million prize fund to be shared among the first 15 players. The event replaced the European Tour Order

of Merit.

The 2009 edition of the Dubai Desert Classic, held in February, marked the twentieth anniversary of the

US$2.5 million European Tour event at the Emirates Golf Club. Known as the ‘crown jewel’ of the European

Tour’s three-stop ‘Desert Swing’, the tournament was won by Rory Mcllroy.

Westwood and Mcllroy, along with top ten-ranked Paul Casey, Henrik Stenson and Sergio Garcia, competed

in the fifth Abu Dhabi Championship in January 2010 at Abu Dhabi Golf Club. The championship kicked off

the 2010 European Tour and is another popular event in the ‘Desert Swing’. The American Chris DiMarco

was the first to have his name etched on the iconic Falcon Trophy in Abu Dhabi in 2006. Casey won it twice,

in 2007 and 2009, with Germanys Martin Kaymer making it a double also in 2008 and 2010.

Another new event on the UAE golfing calendar was the Saadiyat Beach Classic, a celebrity Pro-Am, which

officially opened the Saadiyat Beach Golf Club, three days after the Abu Dhabi Golf Championship, raising

over Dh1.2 million for selected children’s charities.

The capital city was also the venue for the Abu Dhabi Junior Championship in which 18-year-old Joele

Neale, winner of the last two order of merit titles, triumphed. Twelve teenagers took part in 2009, including

one from the UAE.

So far, the UAE has produced two golfers, Khalid Yousuf and Ahmad Al Musharrekh, who compete on the

international circuit. Both players were selected by the Emirates Golf Federation to participate in the Uniqa

FinanceLife Open as part of the Golf Club Gut Murstatten at Lebring in Austria. They had also played key

parts in the previous GCC Golf Championship where they guided the UAE team to second place behind the

winners, Bahrain. Ahmad also won the individual championship with a gross 216 in the same competition.

Khalid had previously competed twice in the Desert Classic.

277 > sports

WatersportsEmiratis are at home on the water, sailing, and boating in general, having sustained the country in one form

or another for millennia. Not surprisingly, the warm and usually calm blue waters of the Gulf provide great

scope for a range of watersports and Abu Dhabi International Marine Sports Club, Dubai Offshore Sailing

Club, Dubai International Marine Club, Fujairah International Marine Club and similar clubs in Sharjah, Ajman

and Umm Al-Qaiwain provide superb facilities, enabling enthusiasts to indulge in their favourite pastime

throughout the year.

The traditional dhow-racing season begins in October with the first heat for the 22-foot class at the DIMC.

Races are held throughout the season for all classes culminating, in May, in the Sir Bu Nu’air dhow race.

Keeping the age-old tradition of seamanship alive, a younger generation of sailors call upon their knowledge

of local winds and tides as they set off from near the island of Sir Bu Nu’air in a modern-day re-run of the

pearling fleet’s race home.

Organisations such as Emirates Heritage Club in Abu Dhabi bridge the gap between traditional and

contemporary sailing, imparting maritime skills and providing competitive experience for local youngsters.

The clubs also run races for all classes of dinghies and yachts, with the Dubai Muscat Offshore Sailing Race

taking place in November. International teams, including America’s Cup challengers, frequently train in the

ideal local conditions and international competitions are often held in the UAE. In fact, Dubai will host the

prestigious Louis Vuitton Trophy series in 2010.

Local knowledge has also been put to good use in powerboat racing, a watersports event that is far from

traditional. Here Emiratis have excelled on the world stage, the Dubai-based Victory team being the most

successful in the history of the UIM and WPPA Class 1 World Powerboat Championships.

Victory entered the last leg of the championships in Dubai in December 2009 as defending Class 1 World,

Middle East and Edox Pole Position Champions, and the newly crowned 2009 European Champions. However,

tragedy struck on 11 December with the deaths of European Champions Mohammad Al Mehairi from the

UAE and Jean-Marc Sanchez of France, following a racing accident during race one of the Dubai Grand Prix.

The season ended on a sombre note with Victory team’s Arif Al Zafeen and Nadir bin Hendi driving Fazza 3

as Class 1 World, Middle East and Edox Pole Position Champions. Victory 1’s Mohammad Al Mehairi and Jean-

279 > sports

Marc Sanchez were runners-up to their team-mates, with Kolbjorn Selmer and Jorn Tandberg in Welmax

taking third place.

Team Abu Dhabi driver Thani Al Qamzi narrowly missed out on a maiden UIM World Formula 1 Championship

title after finishing second behind Sami Selio of Finland in the final race in Sharjah in December 2009. The

world title went to the Italian Guido Cappellini, who finished third in the race and hence amassed enough

points to take his record haul to ten world titles, leaving Al Qamzi ten points behind in second and Selio in

third. It was al Qamzi’s best finish in the championship, surpassing his third-place in 2006 and 2007.

Al Qamzi’s team-mate Ahmad al Hameli finished seventh overall because his boat flipped over soon after

the start, but he and Al Qamzi went on to win the team championship, amassing 227 points from their

closest challengers Cappellini’s Zepter (168) and Team Azerbaijan (155).

Equestrian SportsA love of horses runs in the blood of most Emiratis, especially a fondness for the classical Purebred Arabian

horses that were stalwart companions for centuries. This passion is expressed in many forms, including

horse-racing, endurance racing, showjumping, and polo. All equestrian and racing activities are supervised

by the Emirates Equestrian Federation (EEF), which was established in 1996.

In 2009, due to the transition of racing from Nad al-Sheba, the centre of racing since 1992, to the new

Meydan Racecourse, Jebel Ali hosted the opening meeting for the first time since the 2002–2003 season

and saw fixtures increased to 14 for 2009–2010. Racing also returned to the Sharjah Equestrian and Racing

Club for the first time since the 2007–2008 season. Meanwhile, the Abu Dhabi Equestrian Club commenced

its programme of 17 scheduled fixtures on 8 November 2009.

The brand new Meydan’s opening fixture was scheduled for 28 January 2010, to be followed by ten Dubai

International Racing Carnival fixtures including the fifteenth anniversary of the Dubai World Cup to be held

on 27 March 2010. The prize money for this prestigious event has been increased from US$6 million to

US$10 million, thus raising the total amount to US$26.5 million for eight races.

In 2009 the Eoin Harty-trained gelding Well Armed won the fourteenth Dubai World Cup. However, much

of the spotlight was focused on the victories of Emirati apprentice jockey Ahmed Ajtebi on Gladiatorus in the

Left: The traditional dhow-racing season culminates in a sprint from Sir Bu Nu’air, a re-enactment of the race for home by the old pearling fleets.

280 > UAE 2010

US$5 million Dubai Duty Free and Eastern Anthem in the US$5 million Dubai Sheema Classic. This marked the

first time an apprentice as well as the first time that an all-Emirati operation, including the trainer Mubarak bin

Shafya and the owners Sheikh Mansour bin Mohammed Al Maktoum and the Dubai Crown Prince Sheikh

Hamdan bin Mohammed Al Maktoum respectively, won races at the Dubai World Cup meeting. The two

victories earned Ajtebi a place in the Godolphin team, the international racing operation of H.H. Sheikh

Mohammed bin Rashid Al Maktoum, Vice President of the UAE and Ruler of Dubai.

Ajtebi also went on to win the Group 1 Breeder’s Cup Juvenile Dirt on the Godolphin horse Vale Of York in

the US and became the first Arab to compete in the international jockey’s championship in Mauritius.

Purebred Arabian horses are at the core of the UAE’s culture and heritage and Abu Dhabi has taken a leading

role in providing support for the breed at home and abroad. The Sheikh Mansour bin Zayed Al Nahyan Global

Flat Racing Festival will kick-off in January 2010 to be held in racing centres around the world, including the

US, France, Netherlands and Germany. Organised in association with the newly named Al Wathba Stud Farm,

owned by H.H.Sheikh Mansour bin Zayed Al Nahyan, UAE Deputy Prime Minister, Minister of Presidential

Affairs, the festival is a series of races for four-year-old Purebred Arabian horses. In 2009 Seraphin Du Paon,

owned by President H.H. Sheikh Khalifa bin Zayed Al Nahyan, emerged the winner of the fourth and final

race of the Festival. Another strong contender was Rahef, owned by Sheikh Mansour.

The debut of Purebred Arabian horse-racing, the third round of the UAE President Cup (Group 1), at England’s

historic Ascot racecourse on 25 July 2009, was a particularly successful milestone in the UAE’s bid to promote

Purebred Arabian racing and the culture and heritage of the UAE around the world. The President of the

UAE Championship series for Purebred Arabians, organised in major European cities by the EEF, was first

staged in 1994 with the support of the late Sheikh Zayed bin Sultan Al Nahyan.

The UAE Equestrian and Racing Federation has also built up a very strong infrastructure to support endurance

racing, in which the courage and stamina of Purebred Arabians ensure that they are particularly successful.

There are three self-sufficient modern endurance centres or villages in the country at which the carefully

monitored and controlled races are run. Among the sport’s strongest supporters are many members from

the royal families of the Emirates, several of whom regularly take part in endurance competitions alongside

large numbers of UAE nationals and resident foreign riders and visiting riders from abroad.

282 > UAE 2010

In 1998, the UAE hosted the Endurance World Championship which attracted a record 162 competitors. The

first World’s Preferred Endurance Ride was held in 1999 in the UAE and the event is now an annual feature

under a new title: the FEI/UAE World Cup Endurance.

In late 2002, The Al Wathba Endurance Village in Abu Dhabi was refurbished and H.H. The President’s Cup

(160 kilometres) and the National Day Cup (120 kilometres) rides are annual important events here.

This focus on excellence paid off when UAE rider Sheikh Ahmed bin Mohammed Al Maktoum became the

youngest endurance rider in history and also the first man to win the coveted FEI World Cup Endurance

Championship at the 2002 World Equestrian Games in Spain.

Showjumping also features strongly in equestrian activities and Sheikha Latifa Al Maktoum won the Emirates

Show Jumping Championship at the Ghantoot Polo and Racing Club in 2009.

CricketCricket administration in the country underwent re-structuring in 2009 with the appointment of a new

board under the chairmanship of Sheikh Nahyan bin Mubarak Al Nahyan, Minister of Higher Education. The

goals of the new regime include establishing cricket at the grassroots, in addition to introducing the game

to Emiratis, promoting women’s cricket and unifying governance across all regional cricket councils.

Preparations are under way to send the first all-Emirati cricket team to Guangzhou, China to compete in

the Twenty20 event at the 2010 Asian Games. As per Olympic rules, only passport holders are permitted to

represent the country in the Asiad, meaning the vast majority of the expatriate-dominated national team

will be ineligible to play.

Recent developments will ensure that Emirati cricketers have the opportunity to train with the best. The Abu

Dhabi Cricket Club became an Associate Club partner of the Marylebone Cricket Club (MCC) in England in

2009 enabling aspiring cricketers in the UAE to train under the same expertise that has produced renowned

players such as Denis Compton, Sir Ian Botham and Mark Waugh. In Dubai, youngsters eagerly anticipate

the opening of the ICC’s Global Cricket Academy at Dubai Sports City.

For the past three years, a handful of English counties have started to compete for the Pro-Arch trophy in

pre-season warm-ups in Abu Dhabi and other emirates and the three-year partnership between Abu Dhabi

283 > sports

and Marylebone also enables the MCC to use Abu Dhabi’s stadium and academy during the English off-

season as well as to promote the game further in the region. The announcement of the new association

coincided with the visit of the MCC World Cricket Committee to the ICC headquarters in Dubai.

Plans are also in place to relocate the traditional curtain-raiser to the English season, the match between

the champion county and MCC, to Zayed Stadium in Abu Dhabi in April 2010. The four-day match against

Durham at the Sheikh Zayed Stadium is part of an MCC drive to generate new cricket fans.

In 2009, Zayed Stadium and Dubai Sports City co-hosted Pakistan’s ‘home series’ with Australia and New

Zealand. Pakistan also played a three-match ODI series with the West Indies in Abu Dhabi.

RugbyThe expatriate community brought their love of rugby with them to the UAE and the sport is now played

in a number of clubs throughout the Emirates. Major tournaments such as the Dubai Rugby Sevens, which

has become a significant international event over the years, have also increased its popularity. The local

clubs have become increasingly more professional in their approach to the game and Abu Dhabi’s Club, a

founding member of the Arabian Gulf Rugby Football Union, is partnered with London’s Harlequins, playing

under the name Abu Dhabi Harlequins.

On 5 December 2009 New Zealand clinched the Emirates International Trophy for the second time in three

years with a 24–12 win over Samoa in the final of the Emirates Airline Dubai Rugby Sevens, kicking off the

eight-tournament IRB Sevens World Series 2009–2010 that ends in Scotland in May.

The three-day rugby showcase was held at the Emirates purpose-built facility ‘The Sevens’ and attended

by more than 40,000 people, slightly down on the previous year, with a further 750 million watching on

television around the world. This was a far cry from the first tournament, in 1969, which was played on a

sand pitch in Al Awir, and watched by no more than 250 people.

Other SportsSpace does not permit a comprehensive review of all the competitive sports that take place in the UAE, from

ice hockey to jet-skiing, angling to parachuting. Suffice to say, that if it can be done it is being done in the UAE.

Books, films and online resourcesThis year, the 2010 Yearbook, a comprehensive information source on developments

that occurred in the United Arab Emirates over the past 12 months, is a fully interactive

presentation on DVD-Rom. The DVD also contains a library of all the UAE Yearbooks

published since 2000. These are in fully searchable format, providing a unique historical

record of development in a fast-moving country that straddles East and West, both

geographically and culturally. In addition a dedicated website, www.uaeyearbook.ae,

will take the reader to updates on a wide range of Yearbook topics.

Daily news reports on the UAE, a searchable news database, and further information

on the country are also available on www.uaeinteract.com

Features• Peruse UAE Yearbook 2010, an invaluable record of life in the UAE

• Search the UAE Yearbook library from 2000 to 2010

• Access updates on Yearbook topics on www.uaeyearbook.ae

• Link to the largest website dedicated to the UAE, www.uaeinteract.com

• Enjoy three high-quality films on the UAE, revealing a country

and people as never before

The UAE Yearbook 2010 DVD-rom is available in English, Arabic, French, Spanish, German and Chinese.

The UAE Yearbook 2010 is published by Trident Press Ltd

on behalf of the UAE National Media Council.

Windows & Mac OS

9 781905 486595

ISBN 978-1-905486-59-5